Phones 4u 'Forced Into Administration'

jabbamk1 · 14-09-2014, 23:34

Quote:

The real downsides to this though are the public at large. The more competition you have the more that drives down prices. All the big operators want the profits for themselves. The contracts and phones will if anything become even more expensive.

This is my concern and has been for the past couple of years now. Look at how all the operators have become the same offering the same all for the same price. Where is the differentiation and price wars?

Aye Up · 14-09-2014, 23:51

Quote:

Originally Posted by jabbamk1

This is my concern and has been for the past couple of years now. Look at how all the operators have become the same offering the same all for the same price. Where is the differentiation and price wars?

I think competition will still happen, but in a more tailored fashion....i.e. maybe borrowing the O2 Refresh model and putting their own spin on it.

Interestingly the BBC offers a bit more analysis http://www.bbc.co.uk/news/29201191

Quote:

A spokesperson for EE said the decision not to renew its contract with Phones 4U was "driven by developments in the marketplace that have called into question the long term viability of the Phones 4U business".

I think the "long term viability" for P4U has always been in question.....hence why CPW merged with another retailer. One can only last for so long riding on the coattails of other businesses....It was inevitable that Networks would bring everything "Direct" and in house. Dixons-Carphone will benefit hugely though, their buying power will have increased massively as a result of the merger meaning the networks would be foolish to overlook their potential offering.

DarthFader · 14-09-2014, 23:54

Ironic to see the Phones4U ad tonight. The one where the sales guy takes the customer to the future to see if her phone would still be current. Surely the sales guy shoukd Vanish in the future part.

(Sorry for the staff, not making light of the sad news)

dangetti · 14-09-2014, 23:57

Quote:

“Any orders that have not already been dispatched will be cancelled and any payments refunded to customers. Phones4U apologises to its customers for the inconvenience.”

http://www.geekanoids.co.uk/news/pho...eorders1492014

My name's Scott · 15-09-2014, 00:10

Sad for the people who worked there, but it really was a terrible shop.

Everything Goes · 15-09-2014, 00:31

Timeline of events:

O2 ditched Phones4u in January 2014. Followed by Vodafone in September 2014 (contract terminating in Feb 2015) now of course EE In September 2014.

http://www.mobilenewscwp.co.uk/2014/...er-poor-sales/

david16 · 15-09-2014, 00:31

Quote:

Originally Posted by Rush

Another empty shop on the high street.

Or the town's main indoor shopping centre.

Stiggles · 15-09-2014, 00:48

I guess that the Life mobile network they run will be ditched as well.

Sister just took out a contract with them last month

Aye Up · 15-09-2014, 01:21

Quote:

Originally Posted by Stiggles

I guess that the Life mobile network they run will be ditched as well.

Sister just took out a contract with them last month

That can either work two ways, the parent network will take over the agreement or she maybe let out of it no penalty keeping the handset (if one was supplied). Suffice to say it isn't all doom and gloom as you are reading.

habby · 15-09-2014, 01:49

I was actually going to go in my local branch next week to change my contract!!

Its come at a good time for Currys as my local branch has a Phones4U franchise in there. They don't even need to cancel their contract to be there now.

Aye Up · 15-09-2014, 01:55

Quote:

Originally Posted by habby

I was actually going to go in my local branch next week to change my contract!!

Its come at a good time for Currys as my local branch has a Phones4U franchise in there. They don't even need to cancel their contract to be there now.

Even if P4U were to survive. it was expected that the resulting merger with CPW would have terminated those P4U franchising in Currys stores.

enapace · 15-09-2014, 05:58

Sad news about Staff I know a lot of people who work in the Phones For U main office at the Lymesdale Business Park just outside of Stoke. As others have said though Phones 4 U never changed over the years. I used to often see attempts to get pulled into a shop by someone standing outside happened to me a few times when i just walking past.

daclick · 15-09-2014, 07:14

Sad for the staff however I've used them previously and there was always some kinda cock up so good riddance also being someone that also does now work in the industry the amount of help and advice created by them is heavy so hopefully now that will be reduced

Resonance · 15-09-2014, 07:21

Shame really. I've never been in to on if their shops, but did get my most recent contact through their website. It was £8/month cheaper than going directly to EE.

psionic · 15-09-2014, 07:28

They used to offer 'gifts' or cash back deals with contracts didn't they? I guess any recent customers are totally stuffed then...

Always a shame for the staff when a company goes into administration. But I doubt the company itself will be missed.

AyrshireDJ · 15-09-2014, 08:01

Last January I was looking to upgrade my iphone. Went into my local EE shop - who I have been a customer with for many years, and the sales staff were less than helpful. Went across the street to the other EE shop (a rebranded T Mobile shop) and again, less than helpful.

Walked down the road, into Phones4U and totally different outlook. Walked out with a better iphone, better contract, more data and calls and texts and also upgraded to 4G (was previously an Orange 3G customer), AND they bought my old iphone off me. The EE shops werent even interested in a trade in, let alone giving me the new handset for free, which Phones4U gladly offered.

Until that day I was a big fan of going straight to the providers shop rather than pay a "middle man", but since that day my views changed.

Although I may have just been "lucky" I cant really fault Phones4U - they worked harder and got my custom and would get future custom from me if they survive, and would be sad to see them go, as would definitely be giving them a visit to discuss an upgrade to an iphone 6

soulboy77 · 15-09-2014, 08:30

Any business model that relies on having just a couple of big contracts is bound to come unstuck at some point. They teach that in GCSE Businesss Studies.

Its always the high street employees that bare the brunt, I'm sure the directors will be alright.

plymouthbloke1974 · 15-09-2014, 08:32

They've cancelled all iPhone 6 pre orders...

shadowstarx · 15-09-2014, 08:46

Was meant to be having an interview at one of the stores today, haven't received anything telling me the interview is off but I assume it wont be happening due to all this, would be nice to just be let know via email or something though.
Quite annoyed but my thoughts go to the current staff.

Chris1973 · 15-09-2014, 08:46

Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight.

Its not like all of the big companies are moving their bases here!.

Valentine · 15-09-2014, 09:09

Quote:

Originally Posted by IslandNiles

How many iPhone 6 pre-orders did they take, I wonder?

I was in my local store on Saturday afternoon looking at tariffs for the 6, glad I didn't sign anything!

exterra · 15-09-2014, 10:51

"Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight."

The ONS data for the year to April 2014 shows an increase of 780,000 people in work - the economy is still creating over 2,000 additional new jobs each day so when you take into account they are spread across the whole country the former P4U employees should find jobs pretty quickly.

http://www.ons.gov.uk/ons/rel/lms/la...-bulletin.html

darkthunder35 · 15-09-2014, 11:16

Went past my local Phones4u today in Farnborough and the staff were in there taking the shop apart.

Feel bad for the staff.

ktla5 · 15-09-2014, 11:35

Quote:

Originally Posted by Everything Goes

Thought they might have made it past Xmas as their Vodafone contract expires in Feb 2015 but I guess EE pulling the plug which had been widely expected tipped the balance.

What I dont quite follow, but then I am not business minded!
Turnover in 2013 £1Bn Profits so far £100million fine until Friday night, EE pull contract, goes bust on Monday ?

enapace · 15-09-2014, 11:37

Quote:

Originally Posted by exterra

"Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight."

The ONS data for the year to April 2014 shows an increase of 780,000 people in work - the economy is still creating over 2,000 additional new jobs each day so when you take into account they are spread across the whole country the former P4U employees should find jobs pretty quickly.

http://www.ons.gov.uk/ons/rel/lms/la...-bulletin.html

It depends the worst segment of unemployment is 18-25 and a lot of Phones 4 U are around that age bracket so might not be easy for them to find work. Also depends on Area I know for instance in Stoke On Trent they are considered a big employer they, Vodafone and the supermarkets are the biggest employers in that area. So I wouldn't say it is going be easiest for people find work.

14-09-2014, 23:34	#26
jabbamk1 Forum Member Join Date: Jan 2012 Location: London, UK Posts: 8,759	Quote: Originally Posted by Faust The real downsides to this though are the public at large. The more competition you have the more that drives down prices. All the big operators want the profits for themselves. The contracts and phones will if anything become even more expensive. This is my concern and has been for the past couple of years now. Look at how all the operators have become the same offering the same all for the same price. Where is the differentiation and price wars?

14-09-2014, 23:51	#27
Aye Up Forum Member Join Date: Mar 2001 Location: North West Posts: 4,885	Quote: Originally Posted by jabbamk1 This is my concern and has been for the past couple of years now. Look at how all the operators have become the same offering the same all for the same price. Where is the differentiation and price wars? I think competition will still happen, but in a more tailored fashion....i.e. maybe borrowing the O2 Refresh model and putting their own spin on it. Interestingly the BBC offers a bit more analysis http://www.bbc.co.uk/news/29201191 Quote: A spokesperson for EE said the decision not to renew its contract with Phones 4U was "driven by developments in the marketplace that have called into question the long term viability of the Phones 4U business". I think the "long term viability" for P4U has always been in question.....hence why CPW merged with another retailer. One can only last for so long riding on the coattails of other businesses....It was inevitable that Networks would bring everything "Direct" and in house. Dixons-Carphone will benefit hugely though, their buying power will have increased massively as a result of the merger meaning the networks would be foolish to overlook their potential offering.

14-09-2014, 23:54	#28
DarthFader Forum Member Join Date: May 2004 Location: Fareham, Hampshire Posts: 3,753	Ironic to see the Phones4U ad tonight. The one where the sales guy takes the customer to the future to see if her phone would still be current. Surely the sales guy shoukd Vanish in the future part. (Sorry for the staff, not making light of the sad news)

14-09-2014, 23:57	#29
dangetti Forum Member Join Date: Apr 2008 Posts: 289	Quote: “Any orders that have not already been dispatched will be cancelled and any payments refunded to customers. Phones4U apologises to its customers for the inconvenience.” http://www.geekanoids.co.uk/news/pho...eorders1492014

15-09-2014, 00:10	#30
My name's Scott Forum Member Join Date: Feb 2010 Location: Homerton, London, E9 Posts: 1,742	Sad for the people who worked there, but it really was a terrible shop.

15-09-2014, 00:31	#31
Everything Goes Forum Member Join Date: Mar 2002 Location: In the future.... Posts: 11,259	Timeline of events: O2 ditched Phones4u in January 2014. Followed by Vodafone in September 2014 (contract terminating in Feb 2015) now of course EE In September 2014. http://www.mobilenewscwp.co.uk/2014/...er-poor-sales/

15-09-2014, 00:31	#32
david16 Forum Member Join Date: Nov 2001 Location: Central Belt Posts: 12,290	Quote: Originally Posted by Rush Another empty shop on the high street. Or the town's main indoor shopping centre.

15-09-2014, 00:48	#33
Stiggles Forum Member Join Date: Jan 2011 Location: Dundee, Scotland Posts: 9,293	I guess that the Life mobile network they run will be ditched as well. Sister just took out a contract with them last month

15-09-2014, 01:21	#34
Aye Up Forum Member Join Date: Mar 2001 Location: North West Posts: 4,885	Quote: Originally Posted by Stiggles I guess that the Life mobile network they run will be ditched as well. Sister just took out a contract with them last month That can either work two ways, the parent network will take over the agreement or she maybe let out of it no penalty keeping the handset (if one was supplied). Suffice to say it isn't all doom and gloom as you are reading.

15-09-2014, 01:49	#35
habby Forum Member Join Date: May 2004 Location: East London Posts: 9,496	I was actually going to go in my local branch next week to change my contract!! Its come at a good time for Currys as my local branch has a Phones4U franchise in there. They don't even need to cancel their contract to be there now.

15-09-2014, 01:55	#36
Aye Up Forum Member Join Date: Mar 2001 Location: North West Posts: 4,885	Quote: Originally Posted by habby I was actually going to go in my local branch next week to change my contract!! Its come at a good time for Currys as my local branch has a Phones4U franchise in there. They don't even need to cancel their contract to be there now. Even if P4U were to survive. it was expected that the resulting merger with CPW would have terminated those P4U franchising in Currys stores.

15-09-2014, 05:58	#37
enapace Forum Member Join Date: Mar 2013 Posts: 4,249	Sad news about Staff I know a lot of people who work in the Phones For U main office at the Lymesdale Business Park just outside of Stoke. As others have said though Phones 4 U never changed over the years. I used to often see attempts to get pulled into a shop by someone standing outside happened to me a few times when i just walking past.

15-09-2014, 07:14	#38
daclick Forum Member Join Date: Aug 2005 Posts: 3,336	Sad for the staff however I've used them previously and there was always some kinda cock up so good riddance also being someone that also does now work in the industry the amount of help and advice created by them is heavy so hopefully now that will be reduced

15-09-2014, 07:21	#39
Resonance Forum Member Join Date: Jan 2010 Posts: 9,212	Shame really. I've never been in to on if their shops, but did get my most recent contact through their website. It was £8/month cheaper than going directly to EE.

15-09-2014, 07:28	#40
psionic Forum Member Join Date: May 2002 Location: Crystal Palace TX Posts: 19,702	They used to offer 'gifts' or cash back deals with contracts didn't they? I guess any recent customers are totally stuffed then... Always a shame for the staff when a company goes into administration. But I doubt the company itself will be missed.

15-09-2014, 08:01	#41
AyrshireDJ Forum Member Join Date: Jan 2012 Posts: 62	Last January I was looking to upgrade my iphone. Went into my local EE shop - who I have been a customer with for many years, and the sales staff were less than helpful. Went across the street to the other EE shop (a rebranded T Mobile shop) and again, less than helpful. Walked down the road, into Phones4U and totally different outlook. Walked out with a better iphone, better contract, more data and calls and texts and also upgraded to 4G (was previously an Orange 3G customer), AND they bought my old iphone off me. The EE shops werent even interested in a trade in, let alone giving me the new handset for free, which Phones4U gladly offered. Until that day I was a big fan of going straight to the providers shop rather than pay a "middle man", but since that day my views changed. Although I may have just been "lucky" I cant really fault Phones4U - they worked harder and got my custom and would get future custom from me if they survive, and would be sad to see them go, as would definitely be giving them a visit to discuss an upgrade to an iphone 6

15-09-2014, 08:30	#42
soulboy77 Forum Member Join Date: Jul 2005 Location: Herts Posts: 17,005	Any business model that relies on having just a couple of big contracts is bound to come unstuck at some point. They teach that in GCSE Businesss Studies. Its always the high street employees that bare the brunt, I'm sure the directors will be alright.

15-09-2014, 08:32	#43
plymouthbloke1974 Forum Member Join Date: Aug 2001 Location: Destination: Hard Brexit Posts: 6,368	They've cancelled all iPhone 6 pre orders...

15-09-2014, 08:46	#44
shadowstarx Forum Member Join Date: Dec 2011 Posts: 12	Was meant to be having an interview at one of the stores today, haven't received anything telling me the interview is off but I assume it wont be happening due to all this, would be nice to just be let know via email or something though. Quite annoyed but my thoughts go to the current staff.

15-09-2014, 08:46	#45
Chris1973 Forum Member Join Date: May 2013 Posts: 667	Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight. Its not like all of the big companies are moving their bases here!.

15-09-2014, 09:09	#46
Valentine Forum Member Join Date: Aug 2011 Posts: 2,583	Quote: Originally Posted by IslandNiles How many iPhone 6 pre-orders did they take, I wonder? I was in my local store on Saturday afternoon looking at tariffs for the 6, glad I didn't sign anything!

DS Forums

Phones 4u 'Forced Into Administration'

15-09-2014, 10:51	#47
exterra Forum Member Join Date: Oct 2012 Posts: 116	"Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight." The ONS data for the year to April 2014 shows an increase of 780,000 people in work - the economy is still creating over 2,000 additional new jobs each day so when you take into account they are spread across the whole country the former P4U employees should find jobs pretty quickly. http://www.ons.gov.uk/ons/rel/lms/la...-bulletin.html

15-09-2014, 11:16	#48
darkthunder35 Forum Member Join Date: Jul 2009 Posts: 4,940	Went past my local Phones4u today in Farnborough and the staff were in there taking the shop apart. Feel bad for the staff.

15-09-2014, 11:35	#49
ktla5 Forum Member Join Date: Aug 2010 Posts: 1,489	Quote: Originally Posted by Everything Goes Thought they might have made it past Xmas as their Vodafone contract expires in Feb 2015 but I guess EE pulling the plug which had been widely expected tipped the balance. What I dont quite follow, but then I am not business minded! Turnover in 2013 £1Bn Profits so far £100million fine until Friday night, EE pull contract, goes bust on Monday ?

15-09-2014, 11:37	#50
enapace Forum Member Join Date: Mar 2013 Posts: 4,249	Quote: Originally Posted by exterra "Regardless of the age of the staff, finding over 5500 new Jobs in this Country isn't going to be easy, and it certainly isn't going to happen overnight." The ONS data for the year to April 2014 shows an increase of 780,000 people in work - the economy is still creating over 2,000 additional new jobs each day so when you take into account they are spread across the whole country the former P4U employees should find jobs pretty quickly. http://www.ons.gov.uk/ons/rel/lms/la...-bulletin.html It depends the worst segment of unemployment is 18-25 and a lot of Phones 4 U are around that age bracket so might not be easy for them to find work. Also depends on Area I know for instance in Stoke On Trent they are considered a big employer they, Vodafone and the supermarkets are the biggest employers in that area. So I wouldn't say it is going be easiest for people find work.