EE acquires 58 Phones 4u stores, saving 359 jobs

EE will pay Phones 4u administrators PwC £2.5m for the shops and will rebrand them EE “in due course”.

The move follows that of Vodafone, which on Friday secured a deal to acquire 140 shops, saving 887 jobs.

Phones 4u hit the buffers last week after EE, Vodafone and O2 pulled their support for the retailer. PwC was appointed on Monday and immediately shuttered the 560-strong estate.

It was one of the biggest and most sudden retail collapses in memory and will leave gaps in many high streets.

The EE transaction includes Phones 4u’s interest in the 58 stores’ leasehold properties and their fixtures and fittings as well as “various associated contractual rights and obligations”.

The deal, which does not cover store inventory, remains subject to court approval of the release of the fixed charge security held on behalf of the secured creditors.

PwC partner joint administrator Rob Hunt said:  “We are absolutely delighted to have completed this further disposal of 58 Phones 4u stores, which will both recover value for secured creditors and save 359 jobs.

“As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts.”

E-cigarette shops, bookies, nail bars, charity shops and cafes are also thought to be eyeing the estate.