This is a really odd story, Phones 4U goes into administration putting at 5,596 jobs at risk, but it appeared to be a sound business, generating £1 billion in revenue and over £100 million in profit.
But for some reason EE and Vodaphone decided not to renew contracts, overnight depriving Phones 4U of a business model, as they are basically middlemen sales agents, selling phone contracts.
If the business was that profitable, and presumably generating plenty of customers and revenue for the big phone providers, then why did they pull the plug?
It seems to be about the big players wanting to sell to customers direct and cutting out the middleman, but I suspect we may hear more about the behind the scenes activity in the near future.
Just goes to show, even £1 billion businesses can have an Achilles heel in their business model!
