Member Article

EE and Vodaphone to save 1,246 Phones4U jobs

Telecommunications retailers EE and Vodaphone are expected to acquire 198 stores belonging to Phones 4u following its administration last week, saving up to 1,246 jobs.

Hertfordshire based-EE is to acquire 58 Phones 4u stores in a £2.5 million deal, saving 359 jobs.

Berkshire telecommunications retailer Vodaphone is to save 887 jobs as it acquired 140 of the failed company’s stores.

Retailer Phones 4u entered administration last week, putting 5,500 jobs at risk in its 550 stores nationwide.

The acquired stores will be re-branded to EE and Vodaphone in due course.

The transaction includes Phones 4u’s interest in the 58 stores’ leasehold properties and their fixtures and fittings but it does not include store inventory, which will be recovered and dealt with separately by the administrators.

The deal has been agreed between the parties but remains subject to Court approving the release of the fixed charge security held on behalf of the secured creditors.

PwC will be making an application to the Court on 22nd September 2014 for the release of the fixed charge security that will enable the sale to be completed.

Rob Hunt, joint administrator and PwC partner said: “We are absolutely delighted to have completed this further disposal of 58 Phones 4u stores, which will both recover value for secured creditors and save 359 jobs. As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts.”

This was posted in Bdaily's Members' News section by Ellen Forster .