The company’s stores are closed today pending a decision by administrators on whether the business can be reopened.
Phones 4u stores are closed with thousands of jobs at risk after the retailer said it was being forced into administration by network operator EE’s decision to join Vodafone in cutting ties with the firm.
The retailer, which employs 5,596 people, said its 550 standalone stores would be shut until administrators decide on whether the business can reopen for trading.
Enquiry lines were still operational though the Phones 4u customer service line referred callers to the website, which has been taken offline.
The company said the decision by EE not to renew its current contract, which is due to end in September next year, was a “complete shock” and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.
Phones 4u said it has a healthy balance sheet with profits of more than £100m but had no option but to go into administration.
However, workers facing the threat of redundancy have been given hope by rival firm Dixons Carphone – Sky News has learnt that the business is preparing to highlight at least 1,500 vacancies at Carphone Warehouse stores for which Phones 4u staff would be eligible.
Phones 4u 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.
“A good company making profits of over £100m, employing thousands of decent people has been forced into administration.
“The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise.
“The ultimate result will be less competition, less choice and higher prices for mobile customers in UK.”
Staff were asked to report to work as normal on Monday for a management briefing.
Phones 4u said all mobile contracts bought through Phones 4u would remain unaffected and the networks would continue to provide mobile services to these customers.
Customers were also told that orders which were not dispatched in advance of the decision will not be honoured, though full refunds will be given.
The formal process of appointing PwC as the administrator was expected to take place later on Monday.
The announcement helped shares in Dixons Carphone rise 4% in early trading.
Stefano Quadrio Curzio of BC Partners, Phones 4u’s private equity owner, said: “Our overriding concern is for all the dedicated hard-working employees of Phones 4u at a time of uncertainty for the company.
“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 Phones 4u 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 in the interests of all its stakeholders.”
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.
“We will monitor developments and work to provide any necessary support for customers who joined EE through Phones 4u,” a spokesperson said.
Vodafone said it was “saddened” to read about Phones4u’s plight and added: “We strongly reject any suggestion that we behaved inappropriately at any stage during our negotiations with Phones 4u.”
It said Phones 4u was offered opportunities to propose “competitive distribution terms”, but that the two firms were unable to reach a deal.
Trump Comments on Stock Market’s latest drop – says it’s ‘peanuts’
Trump says Tuesday’s market drop is ‘peanuts’
President Donald Trump played down the stock market’s losses on Tuesday as “peanuts” when compared with the importance of striking a good deal with China and the gains since his election.
The Dow Jones Industrial Average “was about 16,000 or 15,000 and now it’s almost at 30,000,” Trump said at the NATO summit in London. “It’s going to be at 30,000.”
“If the stock market goes up or down — I don’t watch the stock market. I watch jobs. Jobs are what I watch,” he added. Today’s move is “peanuts compared to — we have picked up record numbers so that’s OK. That’s the way I feel.”
The major stock indexes slid Tuesday after Trump said he thinks it would be a good idea to delay signing a trade deal with China after the 2020 presidential election. The Dow Jones Industrial Average fell more than 450 points at its lows on Tuesday, led lower by trade-vulnerable Apple, Caterpillar and 3M.
“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now, and we will see whether or not the deal is going to be right,” Trump told reporters before U.S. markets opened Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no. … In some ways, I think it is better to wait until after the election if you want to know the truth.”
Despite his assurances that he doesn’t watch the market’s daily moves, Trump often tweets within hours of when the U.S. equity market reaches an all-time high. He has tweeted the keyword “stock market” 107 times since his inauguration
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11 kids quotes we’re all feeling
Ok so there’s always that time when you just wish so bad you could straight up say whats on your mind, but you know you really shouldn’t, so you don’t. Well leave it up to kids to say exactly what you’re feeling, no hesitation or regret. Check out these kids quotes that say everything you wish you could!
Why do kids say the darndest things? Comment with your favorite!
How to become a better businessman in 6 steps; Priceless advice from Entrepreneurs
Become a better businessman in 6 steps following this priceless advice from accomplished entrepreneurs.
- “Do something you’re very passionate about, and don’t try to chase what is the hot passion of the day.”
Jeff Bezos accentuates having passion for what you are doing, because if you don’t love it you are much more likely to give up. It’s hard to take an idea and turn it into reality, especially by yourself or when people whom you respect tell you it can’t be done. The passion and love you give to your project will determine it’s success rate over time.
- “Don’t let people who you may respect and who you believe know what they are talking about tell you that it can’t be done.”
Pierre Omidyar continues to say that often they will tell you it can’t be done and that’s only because they don’t have the courage to try it.
- “If you know exactly who you want to be, you need to spend as much time [as possible] with people that are actually that already.”
This advice from Gary Vaynerchuk is actually priceless when it comes to success in the business world. Think as well “It’s not what you know but who you know,” and surround yourself with people you look up to. Human’s adapt to their surroundings quickly, and soon you won’t just want to be an entrepreneur, you will also know how to act like one.
- “Come up with 10 new ideas every day.”
Coming up with at least 10 new ideas every day will keep your “idea muscle” in shape, which is critical for an entrepreneur in order to keep going and stay ahead of the fast paced business world. James Altucher continues to say that once you’ve done this for about 6 months you will be an idea machine. New ideas keep passionate projects alive and ensure growth in every direction.
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- Realize that, “naturally, nobody is interested in your ideas. You have to persuade them, and you have to show them that you are the one person out there that can do it.”
Robert Greene, an American author known for his books on strategy, also says that “no one is really going to help you or give you direction.” Realizing this sooner than others will give you a head start and the ability to stop looking for recognition in others. Instead, you can focus on your passion project and make it perfect, and the world will not be able to ignore it.
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- “Don’t think about ‘how do I get big fast.’ That will happen if you build something meaningful and important.”
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Danae Ringelmann’s advice is not something to skip. If you rush your ideas or your product you will be relying on luck more than anything to create success for you. While luck is certainly involved in alot of things, relying on it or betting on it to ‘get big fast’ doesn’t help you become a better businessman. Being proud of what you create, instilling passion into your work, and working hard will ensure success more than anything.
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