Phones 4u Being Forced Into Administration Proves That Businesses Rely On Established Connections

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Over 5000 employees at 550 Phones 4u stores may be out of a job after their last remaining supplier, EE announced that they were cutting ties with the company just weeks after Vodafone did the same.

Whilst Phones 4u reported profits of more than £100m, they said that they had no option but to go into administration.

Loading up the Phones 4u website this morning led to this rather sad message:

p4u

The business model of Phones 4u was dependant on the mobile service networks renewing their contracts with the high street store.

Phones 4u said that they were shocked by the moves of both Vodafone and EE and that they responsible for the collapse of the business.

A spokesperson for EE said its decision not to extend its contract with Phones 4u was part of a focus on supplying customers directly and questions surrounding the “long-term viability” of the Phones 4u business.

Will Phones 4u will find a way to sustain itself or have they lost the battle to Carphone Warehouse?

Sources: Phones 4uSky News

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