Vodafone has agreed to buy 140 Phones 4u stores, saving almost 900 jobs at the stricken retailer. The mobile phone operator said it had no plans to cut staff in the stores and that all 887 employees at the outlets would be kept on.
The deal will increase the number of Vodafone stores in the UK to about 520, accelerating its plan to sell more contracts and handsets through its own branches. However, the transaction was announced alongside confirmation of 628 redundancies at Phones 4u's headquarters.
Rob Hunt, a partner at Phones 4u's administrator, PwC, said: "We have worked rapidly over the course of the week following our appointment to explore interest in the Phones 4u business and we are very pleased to secure a future for a significant number of stores and continued employment for 887 of the Phones 4u people.
While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the company's creditors."
Vodafone declined to say where the stores were or how much it paid for them. Dixons Carphone, the electrical goods and mobile phone retailer, has agreed to take on up to 800 staff at 160 Phones 4u concessions in its PC World and Currys stores.
However, there was grim news for employees at Phones 4u's head office as PwC announced 628 redundancies at the site in Newcastle-under-Lyme, Staffordshire. About 400 employees will be kept on to work on the administration.
Hunt said: "It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant. We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees."
Phones 4u employed 5,596 people before it was forced into administration on Monday. More than 3,200 staff remain in fear of losing their jobs. EE, the mobile phone operator, is also in talks with PwC about buying stores though it is only said to be interested in a few dozen branches, making more big redundancies likely.
Talks are said to be continuing, with a deal likely to be announced early next week. Phones 4u closed its 550 standalone stores on Monday after EE became the final mobile operator to say it would not sell phones and contracts through the stores.
Owners of £430m of Phones 4U bonds proposed swapping their debt for shares in the business so the company could keep trading, but PwC rejected the idea on Thursday. Phones 4u and its owners, the private equity firm BC Partners, have criticised Vodafone and EE.
The firm's founder, John Caudwell, has alleged "ruthless" behaviour by the mobile operators for rendering unviable the business he sold for £1.5bn in 2006.
However, Vodafone and EE have argued that Phones 4u was unable to offer viable commercial terms to the networks because BC had burdened the business with too much debt.
The administrators are also talking to smaller potential buyers of Phones 4u's stores, which are likely to include coffee shops, e-cigarette sellers and nail bars.
theguardian.com
The deal will increase the number of Vodafone stores in the UK to about 520, accelerating its plan to sell more contracts and handsets through its own branches. However, the transaction was announced alongside confirmation of 628 redundancies at Phones 4u's headquarters.
Rob Hunt, a partner at Phones 4u's administrator, PwC, said: "We have worked rapidly over the course of the week following our appointment to explore interest in the Phones 4u business and we are very pleased to secure a future for a significant number of stores and continued employment for 887 of the Phones 4u people.
While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the company's creditors."
Vodafone declined to say where the stores were or how much it paid for them. Dixons Carphone, the electrical goods and mobile phone retailer, has agreed to take on up to 800 staff at 160 Phones 4u concessions in its PC World and Currys stores.
However, there was grim news for employees at Phones 4u's head office as PwC announced 628 redundancies at the site in Newcastle-under-Lyme, Staffordshire. About 400 employees will be kept on to work on the administration.
Hunt said: "It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant. We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees."
Phones 4u employed 5,596 people before it was forced into administration on Monday. More than 3,200 staff remain in fear of losing their jobs. EE, the mobile phone operator, is also in talks with PwC about buying stores though it is only said to be interested in a few dozen branches, making more big redundancies likely.
Talks are said to be continuing, with a deal likely to be announced early next week. Phones 4u closed its 550 standalone stores on Monday after EE became the final mobile operator to say it would not sell phones and contracts through the stores.
Owners of £430m of Phones 4U bonds proposed swapping their debt for shares in the business so the company could keep trading, but PwC rejected the idea on Thursday. Phones 4u and its owners, the private equity firm BC Partners, have criticised Vodafone and EE.
The firm's founder, John Caudwell, has alleged "ruthless" behaviour by the mobile operators for rendering unviable the business he sold for £1.5bn in 2006.
However, Vodafone and EE have argued that Phones 4u was unable to offer viable commercial terms to the networks because BC had burdened the business with too much debt.
The administrators are also talking to smaller potential buyers of Phones 4u's stores, which are likely to include coffee shops, e-cigarette sellers and nail bars.
theguardian.com
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