http://m.bbc.co.uk/news/29201191 Placed into administration after losing Vodafone and ee contracts. Previously posted profits of £100million.
I think they've made a shedful of money and now they are fooked. Hope innocent bit players don't get burnt.
The big phone companies have decided to cut back on sales through 3rd parties....they realise they are better selling direct than giving the 3rd party companies a cut of their profits. Companies like Phones4u were great until these companies developed their own high street presence, but now they have that foothold can you blame them for not supplying at cut prices to direct competition
Phones4U was set up by the entrepreneur John Caudwell in the middle of the 1980s and sold for £1.5bn some 20 years later. Phones 4u said it had been a profitable business, with turnover of £1bn, underlying profits £105m in 2013 and plenty of cash in the bank, but that without the contracts from the phone networks it no longer had a business. I guess Caudwell saw which way the wind was blowing.....
Up to 5500 jobs may go dependant upon what the administrators can do It's not really a great business model where your company depends on a direct competitor for your profits
I took out a contract with them as I saved £4 a month rather than going direct. I see why they have decided to keep the cut themselves. Also they owe me 3 x £31 so I won't be getting that.
That is the case unless the deals were based on cashback through redemption. In those cases your contract with your service provider will continue but the redemption offers were through Phones4u and are unlikely to be honoured.
It's one of the KCOM Group's biggest national customers with all telephony services into all its stores supplied by KCom.
