Phones4U enters administration as EE and Vodafone cut ties

The networks revealed they will not be renewing supply contracts; decisions that Phones4U said had come as a "complete shock" and would leave the company without a mobile network partner.

EE's current contract with the retailer runs until 30th September next year, while Vodafone's was due to end in February 2015. O2 ended its association with Phones4U earlier this year.

In a statement, Phones4U said that the decisions of both Vodafone and EE meant that it had "no option" but to call in the administrators, with PwC now overseeing the running of the company.

All stores have been closed while the administrators investigate whether the business can reopen and continue trading. Phones4U currently employ almost 5,600 people.

Phones4U chief executive David Kassler said: "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."

Stefano Quadrio Curzio of Phones4U owner BC Partners criticised both networks, saying: "Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4u over more than six months.

"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones4U no time to develop commercial alternatives.

"EE’s decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the board with no alternative but to seek the Administrator’s protection."

Pete was content editor on What Hi-Fi?, overseeing production and publication of digital content. In creating and curating feature articles for web and print consumption, he provided digital and editorial expertise and support to help reposition What Hi-Fi? as a ‘digital-first’ title; reflecting the contemporary media trends. He is now a senior content strategist. 

Latest in AV
Amazon Spring Deal Days 2025 promotional image with Amazon boxes
Amazon Big Spring Sale live: our TV and headphone experts’ real-time buying advice
A render of a couple watching TV in a living room with green beams used to illustrate the sound coming from the soundbar and various other speakers.
Eclipsa Audio: everything you need to know about Samsung’s new Dolby Atmos rival
Samsung QN990F 8K TV with Rewind logo
A sneak peek at Samsung’s futuristic projector, OLED TV’s next evolution, a new Audiolab stereo amp and more
Sony RGB arrangement with Rewind logo
A sneak peek at Sony's next-gen TV tech, our love letter to hi-fi shops, a high-end amp tested and more
LG C5 on stand with Rewind logo
The LG C5 OLED TV tested, a world first for headphones, new hi-fi speakers and more
Pick Of The Month March 2025 5-star products on grey background
WiiM strikes again, the B&W Zeppelin Pro impresses while Technics' latest turntable earns five-stars
Latest in News
Sony WF-C710N earbuds lined up in different finishes
They’re official! Sony finally takes the wraps off its WF-C710N budget wireless earbuds
A flower on a TV screen with a gem in the middle.
TCL's new Mini LED TV range comes with huge brightness gains, reduced blooming and souped-up sound
Sony WH-1000XM4 on a table with a plant
Some of our favourite-ever five-star wireless headphones have plummeted to nearly half price – £172 off!
RCA Roku TV 24-inch (RK24HF1) small TV
My favourite kitchen TV has dropped to under £100 for Amazon Spring Deal Days
Sony XR-48A90K
Amazon has slashed the price of this five-star Sony OLED, but we have found an even better deal
Fiio FX17 in-ear headphones
Fiio's flagship in-ear headphones are packed full of drivers to put your music in pole position