Sad: Phones4u shut down as UK network operators reject phone retailer
Phone4u is a big name in the UK mobile phone industry so if you live in the UK, you must have come across the phone retailer. Or if you don’t, chances are that you must have seen those YouTube commercials compilation videos which feature Phones4u ads (like the one at the end of this article). If the name still don’t ring a bell, well, Phones4u is (was) one of the biggest phone dealers in the United Kingdom.
Bad news is that Phones4u is now out of business (no, the business didn’t run out of money) and that has placed the fate of about 5,500 workers on a sewing thread line.
The company, is currently in “Administration” and it’s stores and offices have been shut nationwide but that doesn’t mean the employees won’t be paid. Good guy Phones4u, all the 5,500 employees will still be receiving bank credit alerts at the end of the month until…
Let’s get down to what put Phones4u into administration. First, the retailer’s bond with O2 was severed earlier this year. That meant that 10% of Phones4u’s business went down the drain. Next to walk out on the retailer was Vodafone who accounted for 25% of the company’s revenue, and finally EE went cold on Phones4u.
EE-branded phones sold by the embattled dealer was responsible for over half of the billion pounds of revenue reported by Phones4u last year. And now, all that is gone.
The CEO of Phones4u, David Kassler, on a sad note informed customers and members of the general public of his company’s plight, ” 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. ”
He said his company was raking over £100 million in profits yearly, while giving jobs to thousands of “decent people”. has been forced into administration. Kassler also added that the end user is likely to bear the consequences as there will be less choice and higher prices for mobile customers in the United Kingdom.
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