EE to Buy 58 Phones 4U Stores in £2.5m Deal

EE has agreed to snap up 58 stores from defunct mobile phone retailer Phones 4U which will save some 359 jobs.

The mobile network provider agreed a £2.5m deal with PwC, which is acting as administrator for Phones 4U, days after Vodafone agreed to buy 140 stores, protecting some 887 jobs.

"We are absolutely delighted to have completed this further disposal of 58 Phones 4U stores, which will both recover value for secured creditors and save 359 jobs," said Rob Hunt, joint administrator and PwC partner.

"As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts."

Phones 4U's private equity owners BC Partners blamed the demise of the handset seller on the sudden departure of Vodafone and EE.

Its founder, John Caudwell, had even suggested that the mobile phone networks conspired to put the mobile phone vendor out of business in order to raise prices and reduce competition.

Caudwell told the BBC's Today programme that it was an "unprecedented assassination" and that the erstwhile network providers contributed to the "assassination" of Phones 4U, calling them "reckless" and "predatory".

However, Vodafone later claimed that Phones 4U management said high cost debt imposed on it by BC Partners prevented the retailer from competeing on the high street.

Dixons Carphone has also agreed to take on 800 Phones 4U employees to work across some of its Currys/PC World stores, but thousands of jobs are still hanging in the balance.