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Administrator closes 362 Phones 4u stores as 1,700 jobs go

Beleaguered mobile phone retailer Phones 4u is to close 362 stores, with the loss of nearly 1,700 jobs, administrators said tonight.

A further 720 staff have been retained to assist with the closure programme, PwC said.

It comes after Phones 4u went into administration last week following network operator EE's decision not to renew its contract.

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Vodafone 'not to blame' for Phones 4u collapse

A Phones 4u store on Oxford Street in central London remained closed today following the company's collapse into administration. Credit: Philip Toscano/PA Wire

Vodafone has rejected claims that it behaved inappropriately during its negotiations with Phones 4u, which collapsed into administration today at the cost of almost 6,000 jobs.

The mobile operator said the decision its contract with Phones 4u was made on "purely commercial reasons following extensive negotiations".

"Phones 4u was offered repeated opportunities to propose competitive distribution terms to enable us to conclude a new agreement, but was unable to do so on terms which were commercially viable for Vodafone," the company said.

The private equity firm BC Partners bought Phones 4u for £610m in 2011, and took a £225m dividend from the business last year, leaving it saddled with debt of more than £600m.

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