Line goes dead as Phones 4u enters administration

UK-based mobile phone retailer Phones 4u has announced it was seeking the appointment of administrators after its network partner EE announced it would not renew its network deal.

EE, the UK’s biggest mobile operator which includes T-Mobile and Orange, was Phones 4u’s last remaining network partner, after the group had lost Vodafone Group in similar circumstances earlier in September.

In a statement released on Sunday night, Phones 4u, which had also lost O2 and Three earlier this year, announced it was left with no other alternatives but to call in administrators and said EE’s decision had come as “a complete shock to the business”.

"Today is a very sad day for our customers and our staff. If the mobile network operators decline to supply us, we do not have a business," group chief executive David Kassler said in a statement.

The retailer, which employs 5,596 staff and runs 720 outlets, has asked staff to report to work as normal on Monday when they will be formally informed of the group’s decision to close its stores until administrators at PricewaterhouseCoopers decide on whether the business can re-open for trading.