Phones4U - Whats Your View Folks ?

[LochNessMonster]

Retailer Phones 4U has gone into administration putting 5,596 jobs at risk.

The chain, which is owned by private equity firm BC Partners, said its 550 stores would all be closed on Monday.

Phones 4U blamed the move on mobile network EE's decision not to renew its contract, which followed a similar move from Vodafone earlier in September.

"If mobile network operators decline to supply us, we do not have a business," said Phones 4U boss David Kassler.

The company said established mobile contracts taken out through it would not be affected, although phones ordered and not despatched - for example anyone ordering the new iPhone 6 over the weekend - would be. A customer service line will be open from Monday at 09:00.

It also said staff should turn up to work as normal, when they would be given further details and would "continue to be paid until further notice".

[Bazile]

Well what can you do , when your'e a middleman and the networks have decided not to renew your contracts ?. Unfortunately you have no business .

[mccfluff]

i'm wondering why both vodaphone & ee decided not to renew their contracts

If their entire business was based on pushing contracts through EE then that is a bit 'eggs in one basket' and i would imagine they had plenty of notice it was going to happen

hope the staff are properly taken care of

[gingejbee]

Of all the places to buy a phone, this would be at the bottom of my list....I understand ( from Which?) that they weren't that good, with very pushy sales-staff. So, from a customer view, better off gone!

[Old_Geezer]

I found them polite, and with keen prices (relatively speaking). I'm somewhat saddened by the news.

[carrust]

Not very good news for the 4,000 staff that are about to lose their jobs.

[BRIGHT SPARK]

John Cauldwell predicted this in 2006 when he sold the company for £1.5 billion!

[mikey4444]

Perhaps we don't need "middlemen" ? Seems like a bad business model to me, doomed to failure.

[Old_Geezer]

Either side of a supply chain is always looking to move up or down into the next bit. It's a case of who has the power to do so, if any of them do.

As a customer I prefer the option of comparing different suppliers at the shop. But to do that the retailer needs a discount from the wholesaler in which to make a profit. And that means putting so much business their way they become indispensable. It seems they turned out to be a short term convenience instead.

[Baldric]

Popped into Local Branch a couple of times when I've needed something, never actually bought anything there, always got the impression it was a case of Lights on, no-one at home!

[Milvus]

Vodafone, O2 etc have their own shops. Why pay a middleman, not dedicated to your brand, when you keep more of the profit for your own company?

[mikey4444]

Milvus...on the button ! It was a bad business model, that was doomed to failure. Mr Caudwell could see that and this is why he took his money and ran....£1.5bn as I recall !

[Old_Geezer]

I guess he was industry savvy. Knew when it was a good business model and when it was about to turn bad, so took the profit and got out. Buyer beware, i seems.