Nine jobs in town under threat after Phones 4u collapse

Phones 4u in Newborough.
Phones 4u in Newborough.

Nine jobs in Scarborough are likely to be lost as a result of the collapse of mobile retail giant Phones 4u, it has been revealed.

The store in Newborough remains closed after the business suddenly went into administration.

It was one of more than 500 Phones 4u branches nationally that did not open for business yesterday.

It comes after EE announced it will not be renewing its current contract with the company, which had been due to end on September 30 next year.

Vodafone had made a similar recent decision to end its association with Phones 4u.

A notice in the window of the Scarborough branch advises customers to call various customer service lines which remain open.

The note also apologised and said it would update customers as soon as possible.

It was signed off by “the heartbroken Phones 4u team”.

Staff are waiting to hear from administrators PwC on whether the private equity-owned business can be reopened for trading.

All mobile contracts bought through Phones 4u will remain unaffected and the networks will continue to provide mobile services to customers.

Joint administrator Rob Hunt said: “This is a very sad day for the business and the many people working there.

“Our initial focus will be to quickly engage with parties who may be interested in acquiring all or part of the business, and to better understand the financial position and options for the company.

“The stores will remain closed while we have these conversations.

“We will also be talking to operators and suppliers, and trying to access funds to pay for the costs of the business, including wages.

“These conversations will determine whether we can re-open stores and trade, and also if and when we can pay the arrears of wages to employees.

“Our hope is that we will be able to pay all the outstanding wages arrears.”