Phones 4 u

[Xenophon PCDGS]

There seems to be a great deal of speculation about this company. Does this company have the current naming rights of the large events arena adjoining Manchester Victoria railway station ?

 

[maniacmartin]

They went into administration a few hours ago. One of many news sources

 

[asylumxl]

They went into administration a few hours ago. One of many news sources

If you give crap service you shouldn't really expect any less.

 

[Crossover]

They went into administration a few hours ago. One of many news sources

Not surprising. My parents were saying only last week that they'd heard that only EE were still with them and their contract was up for renewal soon, with all the other operators not resigning the deal with Phones4U. Coupled with even Dixons Group replacing them with Carphone Warehouse (IIRC), it was the death knell really. My colleague went to a Phones4U subsid in a Currys PC World store near work to get an iPhone cover whilst waiting for our business manager and said the people at Phones4U were pretty useless

 

[Kite159]

I bet the bosses of Carphone Warehouse (or whatever it's call these days) are happy with that news, one less competitor on the high-street to compare prices between various networks.

More empty units in town centres though and ~6000 employees made jobless

 

[Strathclyder]

They went into administration a few hours ago. One of many news sources

There's one store in Clydebank Shopping Centre that won't be opening tomorrow.
Not that I'm surprised or anything. They've been going down the drain for ages now.

 

[Crossover]

I bet the bosses of Carphone Warehouse (or whatever it's call these days) are happy with that news, one less competitor on the high-street to compare prices between various networks.

Dixons Carphone is the core business - who also have Currys PC World etc too
--- old post above --- --- new post below ---

Does this company have the current naming rights of the large events arena adjoining Manchester Victoria railway station ?

I don't think it is naming rights, but more, I guess, sponsorship that means the Arena is named after them

 

[Xenophon PCDGS]

I don't think it is naming rights, but more, I guess, sponsorship that means the Arena is named after them

That being the case, one might well expect a new sponsors name soon, dependent upon the legal niceties that will be involved.

 

[gazthomas]

Remember there are 5,000+ employees (no matter how competent/customer focused) without work today.

 

[Tetchytyke]

I bet the bosses of Carphone Warehouse (or whatever it's call these days) are happy with that news, one less competitor on the high-street to compare prices between various networks.

Phones4U have gone into administration because the networks don't want to sell contracts through third parties. They want to keep the profit for themselves, with the added bonus of making it harder to compare tariffs. With less competition phone tariffs are only going to get more expensive, and quickly. Phones4U were allegedly planning reporting the phone networks to the Competition Commission about the way they've behaved. EE walking away from a contract, despite having more than a year to run, was the final straw.

I doubt Dixons Carphone are going to be happy about the news, because they know they will be next in line for the networks.

I still think that is why Talk Talk was spun off into a separate company and then why the rump of Carphone Warehouse was "merged" into Dixons. It was to try and insulate Carphone Warehouse from the whims of the networks and to try and protect the Talk Talk business when the phone retailer goes up the spout.

 

[lev441]

I actually think it's a really sad situation. As quoted in some of the newspapers/new websites, without the support of the networks, there is no business. How a seemingly 'good' business which made profits of £100m+/year in the past couple of years can go into administration is a bit crazy!!

I don't know the ins and outs of the whole situation but surely Phones 4 U should have done whatever it takes to keep the networks happy? Sure it may meant their profits would drop but there would still be a business!

 

[Feathers44]

...surely Phones 4 U should have done whatever it takes to keep the networks happy?...

From the news reporting, "whatever it takes" in this context is closure. I think the point is that the networks are only going to be happy if they can sell the phone contracts themselves.

 

[jon0844]

Phones 4u for all its faults (poorly trained staff who were forced to employ some horrid sales techniques) did often sell things cheaper than going direct to the networks. The phones were also sold unlocked. Now if you're an operator paying a cut to a dealer that can even afford to sell for less, of course you want rid of them.

In days gone by, cutting off the dealers might have meant losing a sale but I'd guess a lot of people now buy online anyway, or else there's an O2/EE/Vodafone/Three store on their doorstep now anyway.

 

[bussnapperwm]

I got my phone from phones4u and even though the salesman was a little bit pushy, it was a better deal than dealing with ee direct (not to mention tick they effectively paid me to leave my contract early!)

 

[bangor-toad]

Hi,
It doesn't surprise me that there is some reduction in the provision of mobile phone shops. I've not used Phones 4 U so I can't and won't comment on them as such.

But, on a trip to the local shopping centre this weekend I noticed there were these shops:
Carphone Warehouse
Phone 4 U
O2
EE
Vodafone
Three

That's in a small, pretty insignificant, local shopping centre. Is there *really* the need for all of them to be there? I note this pattern is repeated more or less everywhere I go. In some places it seems the majority of the surviving shops are the mobile phone shops. We all love our phones but is there enough business from upgrades (market growth has more or less disappeared) to sustain this level of retail provision?

Personally I think no and this signifies the start of a major rationalisation of the mobile phone retail shops.

Perhaps as an example, when I upgraded my phone a few months ago I didn't go into a shop - I looked online then spoke to the company on the phone, e-mailed the signed contract back and 24 hours later had a nice new phone. I suspect I'm not alone in this.

Will this all mean yet more empty shops on the high street?
Perhaps the answer is a bit worrying...
Mr Toad

 

[hairyhandedfool]

My first experience with Phones4u left me never ever wanting to set foot in any of their shops ever again, looks like I'll definitely manage that now. I did start to think "oh those poor people without a job", but then I realised that some of those people are the reason I don't want to set foot in one of their shops ever again, and so really I have little sympathy for them. Now, ofcourse, they'll find work elsewhere and I'll probably have the misfortune to deal with them again........

....That's in a small, pretty insignificant, local shopping centre. Is there *really* the need for all of them to be there? I note this pattern is repeated more or less everywhere I go. In some places it seems the majority of the surviving shops are the mobile phone shops. We all love our phones but is there enough business from upgrades (market growth has more or less disappeared) to sustain this level of retail provision?....

Perhaps one day we will reach the shoe event horizon.......with phones obviously, rather than shoes.......

 

[talltim]

Perhaps one day we will reach the shoe event horizon.......with phones obviously, rather than shoes.......

I knew that was going to be from HHGTTG before I clicked on the link

 

[chris89]

My first experience with Phones4u left me never ever wanting to set foot in any of their shops ever again, looks like I'll definitely manage that now. I did start to think "oh those poor people without a job", but then I realised that some of those people are the reason I don't want to set foot in one of their shops ever again, and so really I have little sympathy for them. Now, ofcourse, they'll find work elsewhere and I'll probably have the misfortune to deal with them again........

You can't let the minority destroy what you think of the majority of people. Those you came across, happen to lots of places no matter though.

Never shopped at Phones4U anyway as been with Carphone Warehouse, before directly switching via O2. Did recently apply again for a role in the Bridgnorth shop though

Chris

 

[SS4]

Another 6,000 people for Iain Duncan Smith to accuse of being ****less and lazy

 

[meridian2]

Another 6,000 people for Iain Duncan Smith to accuse of being ****less and lazy

I think you'll find anyone who claims benefits is a scrounger, whether they like it or not.

 

[chris89]

I think you'll find anyone who claims benefits is a scrounger, whether they like it or not.

Does that include Disability etc? Yes some are. The Majority arn't. People such as Ian Duncan Smith. Has not helped public opinion.

 

[fowler9]

I think you'll find anyone who claims benefits is a scrounger, whether they like it or not.

Wow, I think that is a little harsh. Perhaps using the dictionary definition it is true but most who claim are paying or have paid in to the system. And I think we all know the what is implied when calling people on Benefits scroungers.

 

[Xenophon PCDGS]

Another 6,000 people for Iain Duncan Smith to accuse of being ****less and lazy

Do I sense political posturing making an entrance upon this thread here ?

 

[SS4]

Wow, I think that is a little harsh. Perhaps using the dictionary definition it is true but most who claim are paying or have paid in to the system. And I think we all know the what is implied when calling people on Benefits scroungers.

I thought it was sarcasm although Poe's Law strikes again

Do I sense political posturing making an entrance upon this thread here ?

Possibly, perhaps we need a version of Godwin's Law

 

[DelayRepay]

I've always been happy with Phones 4 U - I've used them for my last few phones and have always been happy with the deal (and it's been better than the "headline" deal offered by the network, although I appreciate that had I asked the network might have thrown in some freebies).

It's sad to see 5,000 people lose their jobs and yet more empty stores on our high streets, especially when Phones 4 U appears to have been a profitable business.

 

[fowler9]

I thought it was sarcasm although Poe's Law strikes again



Possibly, perhaps we need a version of Godwin's Law

Yeah. Given a second read it comes across as sarcasm. Apologies.

 

[jon0844]

Is there any need for politics here? There are loads of possible factors at play:

1) Private talks about a merger/buy-out by Vodafone fell through.
2) Vodafone and EE discovered that Phones 4U's new management were syphoning off funds and putting the business into more and more debt.
3) Carphone Warehouse had negotiated some incredible deal with Vodafone and EE, but in return for making them deal exclusively with them - thus effectively killing off their sole rival.
4) Vodafone wanting revenge on a firm that has given them no end of grief over the years, right back to when John Caudwell owned it and forced Vodafone to buy Singlepoint (the service provision part of the company) and has always wanted to get even - and finally saw their chance.

And no doubt many more reasons, of which the truth will no doubt come out in due course.

The high street has far too many phone shops, all pretty much selling the same phones. However the tariffs do vary quite a bit, but still - I doubt they'll all survive for that many years.

The thing is, people are now able to keep their latest smartphone for a lot longer than a phone before. Two years should be easy, and it should not only last that long, but still be supported in terms of updates and be powerful enough to still run everything now on the app stores. And buy a tablet and why change it for years? I mean, people change TVs every seven years on average, so it's only likely the battery failing that will make people change that - or it breaking due to being dropped etc.

I change phones every 3 months or so, given it's my job to write about them, but if I wasn't in that position then I think I'd be more than happy to keep whatever I had until it stopped working. And I personally opt to buy any phones that I don't get for free outright, and therefore pay just £15 a month for a tariff that has unlimited data. Sod buying a new phone and paying £30, 40 or 50 per month and probably getting something crap like 1 or 2GB!

Buying a SIM-free phone from somewhere like Amazon is far better, and I can get a SIM by post too - so surely the phone networks will also get rid of more stores in due course.

 

[Crossover]

It is a slightly unusual administration in that the company still seems to have plenty of liquid assets, just that they have entirely lost their supply chain. I'd have thought it cannot be that common an occurrence that money isn't a huge concern (word that staff may still get paid and customers will get deposits back)

 

[jon0844]

This was posted on another forum:

The fact that the owners mortgaged the business by cashing bonds to the value of £505m won't have helped.

The bonds need to be repaid by 2019 and by closing now, paying the staff a decent redundancy, then stripping all their assets and property they may *just* repay these bonds.

If they wait until the indirect dealer contracts expire and for the walk-in trade to dry up due to lack of confidence, the equity companies would be well and truly in the ****e.

As I said, I think there's more to it than what Phones 4U (and ex-owner John Caudwell) is saying.

There's a lot more I could say myself, except that I'd probably fall foul of libel laws and don't fancy being sued, so I'll say nothing!

 

[Strathclyder]

As I said, I think there's more to it than what Phones 4U (and ex-owner John Caudwell) is saying.

Yeah, I think he's hiding something, too.

I, too, could say a lot more on this, but I don't fancy having a libel court case filed against me, so I'm keeping my mouth shut.