Vodafone buys 140 Phones 4U stores as 628 staff are made redundant

Vodafone and EE have been in negotiations with the administrator all week about acquiring some of the most desirable Phones 4U stores. Both are seeking to expand their own-brand retail estates as part of strategies to increase the proportion of customers who buy direct rather than via middlemen.

Vodafone said the acquisition was " a way to accelerate our retail expansion programme and save hundreds of jobs".

"Our offer was accepted by the administrator and we are pleased to report that approximately 900 former Phones4U employees will keep their jobs and join our dynamic retail business.

"Subject to court approval, we will start engaging with these employees and begin the rebranding of the stores to Vodafone as soon as possible."

EE remained in negotiations with PwC on Friday towards taking over dozens more of the remaining 310 Phones 4U stores. It is understood and agreement was not expected before the weekend.

Vodafone's deal with the administrator follows and agreement that Dixons Carphone would take on 800 Phones 4U staff employed on concessions in Currys and PC World stores.

Of the 5,596 staff affected by the collapse of the retailer, 1,687 have been re-employed and 628 made redundant. That leaves 3,281 still unsure of their fate.

Phones 4U went under with £110m in cash and £89m in stock. It owed £125m via a revolving credit facility and £430m to senior bondholders, who are considering their legal options. Debt holders who bought £205m in unsecured Phones 4U bonds have been wiped out.

more