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| Phones 4U collapse boosts rival Dixons Carphone | Phones 4U collapse boosts rival Dixons Carphone |
| (about 2 hours later) | |
| The collapse of Phones 4U into administration saw shares in Dixons Carphone edge higher as the City claimed prospects had improved for the newly merged electrical giant. | The collapse of Phones 4U into administration saw shares in Dixons Carphone edge higher as the City claimed prospects had improved for the newly merged electrical giant. |
| Analysts calculated customers swapping stores means Dixons Carphone could increase annual revenues by up to £225 million, as shares in the firm rose 2.5 per cent to 381.5p. | Analysts calculated customers swapping stores means Dixons Carphone could increase annual revenues by up to £225 million, as shares in the firm rose 2.5 per cent to 381.5p. |
| Investec’s Alistair Davies hailed the news as a “boost” for Dixons Carphone, saying “there could be an opportunity to capture market share”. | Investec’s Alistair Davies hailed the news as a “boost” for Dixons Carphone, saying “there could be an opportunity to capture market share”. |
| Meanwhile Deutsche Bank analyst Warwick Okines estimated Phones 4U’s administration could raise Dixons Carphone’s profits by 10 per cent, although he added the impact could hinge on whether Phones 4u – which made £105 million profits last year – is able to trade through the lucrative Christmas period. | Meanwhile Deutsche Bank analyst Warwick Okines estimated Phones 4U’s administration could raise Dixons Carphone’s profits by 10 per cent, although he added the impact could hinge on whether Phones 4u – which made £105 million profits last year – is able to trade through the lucrative Christmas period. |
| Administrators PwC were today waiting in the wings to be appointed after Phones 4U’s private equity owner BC Partners said administration was the only remaining option for the 27-year-old firm. Its collapse puts 5,500 jobs at risk across the 550-store chain. | Administrators PwC were today waiting in the wings to be appointed after Phones 4U’s private equity owner BC Partners said administration was the only remaining option for the 27-year-old firm. Its collapse puts 5,500 jobs at risk across the 550-store chain. |
| The move comes after network operator EE on Friday informed Phones 4U it does not intend to renew its contract with the retailer, which sells contracts for an array of networks, beyond next year. | The move comes after network operator EE on Friday informed Phones 4U it does not intend to renew its contract with the retailer, which sells contracts for an array of networks, beyond next year. |
| The decision by EE, which is understood to account for around half of Phones 4u’s £1 billion, follows similar moves by Three, O2 and Vodafone. | The decision by EE, which is understood to account for around half of Phones 4u’s £1 billion, follows similar moves by Three, O2 and Vodafone. |
| It is understood the networks wanted the retailer to improve its store service and promotion of brands in shops. | It is understood the networks wanted the retailer to improve its store service and promotion of brands in shops. |
| Stefano Quadrio Curzio of BC Partners, which bought the business for £700 million in 2011, slammed Vodafone, claiming it had indicated it would continue its relationship only to terminate the contract. | |
| He said: “Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.” | He said: “Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.” |
| Vodafone said it “strongly rejected” the allegations it had behaved inappropriately. | Vodafone said it “strongly rejected” the allegations it had behaved inappropriately. |
| Dixons Carphone said it intends to approach administrators over jobs of employees in the company’s 150 Phones 4u shop-in-shops which have been widely expected to be supplanted by Carphone Warehouse outlets since their merger last month. | Dixons Carphone said it intends to approach administrators over jobs of employees in the company’s 150 Phones 4u shop-in-shops which have been widely expected to be supplanted by Carphone Warehouse outlets since their merger last month. |