Hopes for last-ditch rescue of Phone 4u dashed

Hopes for a last-ditch rescue of Phones 4u have been quashed as talks continue over deals to save at least some of its shops and jobs.

Administrators from PwC said it was in discussions with three parties over the potential sale of assets following the company's collapse on Sunday.

However, it said a proposed debt-for-equity swap in which bondholders agree to cut back on what they are owed in order to reopen contract talks with network operators EE and Vodafone was not an option.

PwC expects to pay the majority of salaries and wage arrears and paid tribute to the co-operation of staff since the shock demise of the business.

Joint administrator Rob Hunt said: "Thousands of people have stuck with us during the course of this week in difficult circumstances."

Some 560 stores and 4,800 jobs are still at risk after Dixons Carphone agreed a deal yesterday to take on the 800 staff who had worked at 160 Phones 4u concessions within Currys/PC World stores.

All Phones 4u stores are currently shut while PwC attempts to find buyers.

A call with bondholders today heard a statement from Phones 4u's private equity owner BC Partners in which it said it was devastated by the collapse.