Phones 4u to enter administration after EE cuts ties with retailer

Phones 4u is to go into administration - placing more than 5,500 jobs at risk - after network operator EE joined Vodafone in cutting ties with the retailer.

The company said its stores will be closed on Monday pending a decision by the administrators on whether the business can be reopened for trading.

Phones 4u 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.

The company, which is owned by private equity firm BC Partners, has 550 standalone stores, employing 5,596 people.

Phones 4u chief executive David Kassler said:

Staff have been asked to report to work as normal on Monday morning as they will be briefed by management.