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Dixons Carphone comes to the rescue of Phones 4U staff

Article By: ,  Financial Analyst
September 18, 2014 10:45 AM

Dixons Carphone has offered a lifeline to Phones 4U after the company entered administration.

The newly merged company is set to hire 800 people who work in Phones 4U concessions for its Currys and PC World stores. It builds on a partnership prior to the Dixons and Carphone Warehouse merger where Phones 4U set up shops-within-a-shop at Currys and PC World outlets across the UK.

Dixons Carphone announced on Twitter that it had reached an agreement to offer jobs to Phones 4U employees who work in concession. Sources also claim there are ongoing discussions between mobile phone network operators Vodafone and EE to buy parts of Phones 4U.

The retailer has previously accused both Vodafone and EE as being the key factors as why it had hit financial trouble. Phones 4U entered administration on Monday (September 15th) after EE announced it would not be renewing its contract as it questioned the "long term viability of the Phones 4U business".

It followed a similar decision taken by Vodafone earlier in the month and resulted in accusations from BC Partners, owner of Phones 4U, that the operators acted to inflict "maximum damage" on Phones 4U. Stefano Quadrio Curzio, from BC Partners, explained that there had been no indication that Vodafone and EE were going to make this decision which placed 5,596 jobs at risk.

The move by Dixons Carphone could help to alleviate some of the fears among the Phones 4U workforce but there is still uncertainty in the over 700 stores put at risk by administration.

Rob Hunt,Phones 4U joint administrator, said. “We can confirm that Dixons Carphone have agreed, with our blessing, to offer roles to all people in the Phones 4U concessions located in Dixons Carphone outlets.

"We’re delighted to reach this agreement, thereby securing continued employment for more than 800 people.”

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