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Old 14-09-2014, 22:59   #1221
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Phones4U apparently going into administration. I feel for some of their employees, but my experiences with dial-a-phone showed them up to be a bit of a cowboy outfit.
I found them pretty hopeless in my dealings with them, Seems both Vodafone and EE refused to sign new agreements with them so that's what lead to this.
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Old 14-09-2014, 23:31   #1222
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All stores to close immediately it seems too.
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Old 15-09-2014, 05:05   #1223
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Companies in Administration/Bankruptcy - Latest - Phones4U

EE had another 12 months left with them, but it would have meant that P4U were purely an EE reseller, which EE obviously weren't happy about (they know people go to P4U & CPW to compare networks & that just doesn't work if they're only selling one network!)
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Old 15-09-2014, 06:30   #1224
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What do CW do that P4U didn't?
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Old 15-09-2014, 06:31   #1225
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Not make annoying adverts.
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Old 15-09-2014, 07:56   #1226
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CPW also have their own network
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Old 15-09-2014, 08:58   #1227
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They also seem to own Talk Mobile as well. Or at least provide their service.
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Old 15-09-2014, 09:28   #1228
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Just seems a bit strange. There must be some reason the networks don't want to supply stock. If it's the price comparison aspect (staff will find punters the 'best deal') then what's different with any other outlet (CW, Tesco, Argos) where you can compare the networks under one roof?
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Old 15-09-2014, 10:13   #1229
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What do CW do that P4U didn't?
Perhaps they saw this coming, hence the merger with Dixons - http://www.carphonewarehouse.com/dixons-carphone

It's a shame for Phone4u employees, but they're working to an outdated business model. The operators all sell direct now and people are happy buying like that - they don't need to pay big commission to independent retails any more, so why should they.

The only advantage of Phones4u would be to get impartial advice about the networks, but let's be honest, the service in Phones4u was terrible.

As to why Phones4u, but not Tesco etc, I suspect what it really comes down to is Phone4u demanding too much commission and the operators had no need to give in to their demands.
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Old 15-09-2014, 10:57   #1230
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Re: Companies in Administration/Bankruptcy - Latest - Phones4U

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All stores to close immediately it seems too.
Just been past a P4U store and closed with notice on front door.Must have been a bit of surprise for people coming into work this morning. CPW have got more threads to their arrow so not just a mobile phone shop.
I dud always wonder how many mobile phone shops can you have in a high st? How Sony Centres survive is beyond me unless they undercut everyone which doesnt seem to be the case from what Ive seen.
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Old 15-09-2014, 11:07   #1231
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Phones4U apparently going into administration. I feel for some of their employees, but my experiences with dial-a-phone showed them up to be a bit of a cowboy outfit.
Gone into administration. Walking into work, local store closed with administrators notice stuck on door.

They will it seems now just be wound up as all the mobile companies have pulled their product, although last EE still have a year left on their supply contract, so I am sure lawyers are now looking at compensation for early break.

Existing contracts stay in place on agreed terms.
However any un-shipped orders are cancelled and if you have already been charged will be refunded. This includes the iPhone 6 pre-orders which are now voided.
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Old 15-09-2014, 11:53   #1232
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Quote:
Originally Posted by douglasb View Post
Just seems a bit strange. There must be some reason the networks don't want to supply stock. If it's the price comparison aspect (staff will find punters the 'best deal') then what's different with any other outlet (CW, Tesco, Argos) where you can compare the networks under one roof?
Reading the article in the Telegraph today it's a deliberate plan by the mobile networks to kill P4U by not renewing supply contracts. They no longer want to pay commission to third party sellers and would rather maximise profit selling through own shops or online. They are using the EU reducing roaming charges and hence profits as the excuse.

I am sure other retailers like Argos and Tesco must be in the firing line as their contracts with the networks come up for renewal.

The mobile companies are also expanding store numbers as Vodafone going on a store opening spree to catch the 500 + stores which O2 and EE have.
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Old 15-09-2014, 12:31   #1233
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Re: Companies in Administration/Bankruptcy - Latest - Phones4U

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Originally Posted by malcy View Post
Reading the article in the Telegraph today it's a deliberate plan by the mobile networks to kill P4U by not renewing supply contracts. They no longer want to pay commission to third party sellers and would rather maximise profit selling through own shops or online. They are using the EU reducing roaming charges and hence profits as the excuse.

I am sure other retailers like Argos and Tesco must be in the firing line as their contracts with the networks come up for renewal.

The mobile companies are also expanding store numbers as Vodafone going on a store opening spree to catch the 500 + stores which O2 and EE have.
The difference between Argos/Tesco & 4PU is A/T arent 1 trick ponies.Never took a contract out with any of the 3 but would happily buy a PAYG phone from any of them.
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Old 16-09-2014, 09:19   #1234
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More details coming out - which just make for grim reading. P4U were owned by an equity firm. Apparently they took on £200 million debt in order so that they could pay nice additional bonuses to shareholders. How do you plug that gap? You obviously have to try and increase income - presumably that's where the contract issues arise.

So a solid, profitable business goes to the wall because the city were only interested in short term profiteering.
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Old 16-09-2014, 09:38   #1235
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And yet they try blaming suppliers for not wanting to prop up that business plan buy increasing commission!
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Old 16-09-2014, 10:27   #1236
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And yet they try blaming suppliers for not wanting to prop up that business plan buy increasing commission!
Reading more it seems P4U has been subject to the usual rape and pillage of private equity as we have seen in other failed retailers like Comet.

The £200m of bonds issued in Ireland ! last year were Payment in Kind PIK notes paying 10% and similar to what the Glazier's inflicted on Man Utd. The interest on these ratchets up and is completely unaffordable unless they can find a mug to buy the business or float the shares something they were trying to do at the start of the year.

As Douglas says the £200 million was not to run the business but to withdraw money for the private equity owners. No wonder the City is struggling as who would be stupid enough to lend / buy the bonds on this basis.

Also the rolling up of the debt meant they needed better commission terms from Vodafone and Vodafone have hinted they refused to offer even the same as the previous deal as P4U needed more profit to cover the debt. Hence Vodafone refusing a new deal and walking away.
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Old 16-09-2014, 11:55   #1237
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Seems an odd business really for nowadays. Would have thought that everyone has a mobile nowadays so is there much room for just generic mobile phone shops.

These private equity firms pay little for the business, normally try a quick turnaround by only buying the profitable bits, and quickly sell, i.e. Game or HMV.

However to balance the Universe, you may all be pleased to know that KwikSave is back

http://www.kwiksave.com
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Old 16-09-2014, 14:39   #1238
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In Sheffield in a 2 mins walk on one street, there is a Virgin Media,CPW,P4U,2xEE(1 use to be T-Mobile),Vodafone,02& 3 Store) Just how many Phone stores can you get & how many people get a new phone/contract every day?
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Old 16-09-2014, 20:48   #1239
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Rileys Sports Bars in administration (again)

http://www.independent.co.uk/news/bu...s-9734578.html


Deloittes closed 15 Rileys' venues immediately, although another 44 are set to continue trading as normal, according to Mr Harding.

Rileys that have closed, with the loss of 104 jobs, include sites in Manchester, Guildford, Coatbridge, Derby, Cardiff, Edinburgh, Exeter, Peterborough, Hull, Luton, Rugby, Scunthorpe, Wigan and Plymouth.

Another 20 jobs have gone at the Milton Keynes head office.
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Old 27-09-2014, 09:44   #1240
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Existing contracts stay in place on agreed terms.
However any un-shipped orders are cancelled and if you have already been charged will be refunded. This includes the iPhone 6 pre-orders which are now voided.
Seems they have changed their minds on that

http://www.bbc.co.uk/news/business-29377077

Mind if they only had 136 pre orders, its no wonder they went into administration

CPW will honour any existing orders from P4U

http://www.carphonewarehouse.com/wec...?stop_mobi=yes

Quote:
We understand Phones 4U customers have been told they won't receive a refund on their iPhone 6 contract pre-orders. We don't think that's fair, so we are offering to reimburse Phones 4U customers for any money paid upfront when they buy their new iPhone 6 or 6 Plus contract from us. All you need to do is come into one of our stores with printed evidence of your pre-order.
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