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Southport and  Mersey Reporter -  Your free online newspaper service covering the Merseyside region - (Greater Liverpool).
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Issue:- 19 September 2014

Is the Phones 4u collapse a warning to drop ship distributors?

ON 15 September 2014 Robert Hunt, Ian Green and Robert Moran were appointed as joint administrators of Phones 4u Limited along with their other businesses:- Life Mobile Limited, 4u Wi-Fi Limited, 4u Limited, Jump 4u Limited, MobileServ Limited, Phosphorus Acquisition Limited, Phones 4U Group Limited and Phones4u Finance Plc. As a result all the company's 720 outlets, including 550 standalone stores shut. Then on 16 September 2014 Dan Schwarzmann, Douglas Rackham, Robert Hunt and Ian Green were appointed as joint administrators of Policy Administration Services Limited. This move has shocked staff and customers as the company turned over a profit of £105 million last year and had plenty of cash in the bank: so what went wrong? The move came after EE announced it was severing its ties with the firm, and earlier this year both O2 and Three had removed their custom from the group. On top of that The Vodafone network ceased to sell contracts through Phones 4u a fortnight ago, in effect shutting down the business. Now Administrators are conducting a review the Group's financial situation. Phones 4u has insisted that employees "will continue to be paid until further notice", but all 5,600 employees are in jeopardy as a result. Employees can contact the central HR team on:- 01782 676 969. Also customers can use the following service lines until further notice:-

Phones 4u Customer Service:- 0844 8712253.

Technical Support:- 0844 8712233.

Phones 4u Care (Insurance):- 0844 8710535.

LIFE Mobile Customer Service:- 0844 3221133.

If you are seeking support for an Apple device, and were a Phones 4u Customer you can go to Apple's Support website.

Creditors and suppliers are asked to call Phones 4u Customer Service on:- 0844 8712253, should you have any questions.

This shock change of fortune for what was seen as a slick and well run business has now called into question the likelihood that this could hit other firms who specialise in this market. Its collapse has shown how venerable some firms are in the market that deals with reselling of phone contracts, pay-as-you-go, SIM free phones and accessories.

Has the move to put Phones 4u in to administration affected you or a member of your family? Are you a creditors, a suppliers, or a customer, please let us know your views on this by emailing our newsroom to:-

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