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Phones 4u Collapse: iPhone 6 Pre-Orders Cancelled

15/09/2014 08:22 | Updated 15 September 2014

Phones 4U has collapsed - just three days after thousands placed orders through the company for Apple's new iPhone 6.

It's terrible news for the company's employees - and it's also bad news for iPhone 6 customers.

Phones 4U has now confirmed all iPhone 6 pre-orders will be cancelled.

In a statement the company said:

"Any orders that have not already been dispatched will be cancelled and any payments refunded to customers. Phones 4u apologise for any inconvenience."

Dialaphone is also affected, and like Phones 4U its website is currently down and not accepting new orders.

  • The advice so far is to call customer service for advice. We have asked for clarification - we will update with news as we get it.

Phones 4U? The line you need is: 0844 8712253 (it opens at 9am)
Dialaphone? You need to call 0800 183 7902

Phones 4u said it will go into administration - placing more than 5,500 jobs at risk - after network operator EE joined Vodafone in cutting ties with the retailer.

The company said its stores will be closed today pending a decision by the administrators on whether the business can be reopened for trading.

Phones 4u said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.

The company, which is owned by private equity firm BC Partners, has 550 standalone stores, employing 5,596 people.

Phones 4u chief executive David Kassler said last night: "Today is a very sad day for our customers and our staff.

"If the mobile network operators decline to supply us, we do not have a business. A good company making profits of over £100 million, employing thousands of decent people has been forced into administration.

"The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise. The ultimate result will be less competition, less choice and higher prices for mobile customers in the UK."

phones 4u

The business was set up by entrepreneur John Caudwell in the mid-1980s. By the time he sold it for £1.5 billion in 2006 it was selling 26 phones a minute and employed 10,000 people. It generated sales of more than £2.25 billion.

Phones 4u said it remained a profitable business, with turnover of over £1 billion, underlying earnings of £105 million in 2013 and significant cash in the bank.

It said: "The unexpected decisions by both Vodafone and EE have come as a complete shock to the business. The company is in a healthy state and both EE and Vodafone had, until very recently, consistently indicated that they saw Phones 4u as a long-term strategic partner."

The end of Vodafone's relationship with Phones 4u in February will see it enhance its distribution partnership with Dixons Carphone - the business recently created from the merger of Carphone Warehouse with the owner of PC World and Currys.

The Vodafone tie-up with Phones 4u represented some £212 million of sales and about £18.5 million of earnings in the year to July 31.

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