Phones 4U founder John Caudwell in attack on mobile networks
The founder of Phones 4U has launched a stinging attack on the major mobile phone networks after the company collapsed into administration.
John Caudwell became a billionaire when he sold the company for £1.47 billion in 2006.
And after networks EE and Vodafone severed their links to the phone retailer to plunge it headlong into a crisis which has left it staring at administration, the former boss, who lives near Shropshire, has hit out at the moves via social media.
Talking on Twitter, he said:
And he was clear where the blame lay:
The 61-year-old, who lives in an Elizabethan manor house near Eccleshall,between Market Drayton and Newport, added:
PriceWaterhouse Cooper was officially appointed as administrator for the firm yesterday afternoon.
Its 700-store retail operation, which includes 160 concessions in Dixons Carphone outlets, employs 5,596 people. Stores – including those in Bridgnorth, Oswestry, Shrewsbury and Telford, closed yesterday as its owner BC Partners placed the company into administration.
Joint administrator Rob Hunt said: "This is a very sad day for the business and the many people working there.
"In light of our impending appointment the directors understandably took the decision to close all the shops and sent many staff home.
"Our initial focus will be to quickly engage with parties who may be interested in acquiring all or part of the business, and to better understand the financial position and options for the company. The stores will remain closed while we have these conversations."
He added: "We will also be talking to network operators and suppliers, and trying to access funds to pay for the costs of the business, including wages.
"These conversations will determine whether we can re-open stores and trade, and also if and when we can pay the arrears of wages to employees. Our hope is that we will be able to pay all the outstanding wages arrears."
Mr Caudwell sold the Phones 4u business for £1.5 billion in 2006 to private equity firms Providence Equity Partners and Doughty Hanson. They then sold it to BC Partners in 2011.
But in recent years many mobile operators have opened their own stores to sell direct to the customer.
And the merger of Phones 4u's largest rival Carphone Warehouse with Dixons also helped pile on the pressure.
Carphone Dixons yesterday invited Phones 4u staff to apply for the 1,500 vacancies at its Carphone Warehouse stores.
