{{Short description|Mobile phone company}} {{Use Oxford spelling|date=April 2015}} {{Use dmy dates|date=June 2018}} {{More citations needed|date=November 2014}} {{Infobox company | name = Phones 4u Ltd. | logo = Phones4u.svg | logo_caption = Phones 4u last logo | image = Phone 4U no more, Oxford Street, London (25th September 2014).JPG | image_caption = A closed branch on Oxford Street in London following the group's collapse. | type = Subsidiary | defunct = 15 September 2014 | fate = Entered administration | founder = John Caudwell and Brian Morrison | foundation = 1987 (as ''Midlands Mobile Sales'')<br/> 1996 (as ''Phones 4u'') | location_city = Newcastle-under-Lyme | location_country = England | key_people = Tim Whiting (CEO) | industry = Telecommunications | products = Home, mobile telephone equipment and services | owner = BC Partners | parent = 4u Group | divisions = 4u Wi-Fi Limited<br>Jump 4u Limited<br>Phosphorus Acquisition Ltd<br>Phones 4u Group Limited | subsid = Phones 4u Limited<br>Life Mobile Limited<br>Dial-a-Phone<br>MobileServ Limited<br>Phones 4u Finance Plc<br>The Discovery Store | homepage = {{web archive|url=https://web.archive.org/web/20130828070828/http://www.phones4u.co.uk/|title=phones4u.co.uk}} }} '''Phones 4u''' was a British mobile phone retailer based in the United Kingdom. The company was founded in 1996 and was one of the largest mobile phone retailers in the UK before it ceased operations and filed for administration on 15 September 2014.<ref>{{cite web |date=15 September 2014 |title=Staffordshire-based firm Phones4U goes into administration |url=http://www.itv.com/news/central/update/2014-09-15/staffordshire-based-firm-phones4u-goes-into-administration/ |accessdate=10 February 2015 |publisher=ITV News}}</ref> Since then, the company has been under the control of its administrators, PwC.
==History== In 1987, John Caudwell and his brother Brian founded ''Midlands Mobile Phones'', a wholesaler and distributor of mobile phones. The company became the Caudwell Group, whose high street retail arm was named Phones 4u.{{Citation needed|date=September 2014}}
On 26 September 2006, The Caudwell Group, which owned Phones 4u, was sold for a sum of £1.47 billion to private equity firms Providence Equity Partners and Doughty Hanson & Co.<ref>{{cite web|url=http://caudwell.com/pressreleases/060926%20-%20Caudwell%20Group%20sale%20completed.pdf |title=CAUDWELL GROUP COMPLETES £1.5BN SALE TO PRIVATE EQUITY FIRMS |publisher=Caudwell Group |date=26 September 2006 |accessdate=20 January 2016 |url-status=dead |archiveurl=https://web.archive.org/web/20061205204145/http://caudwell.com/pressreleases/060926%20-%20Caudwell%20Group%20sale%20completed.pdf |archivedate=5 December 2006}}</ref> In February 2008, the group bought online retailer Dialaphone in a deal worth an estimated £9 million.<ref>{{cite web |last=Today |first=Mobile |url=http://www.mobiletoday.co.uk/News/5416/Dial-A-Phone_sold_for_%E2%80%98knocked-down%E2%80%99_%C2%A39m.aspx |title=Dial-A-Phone sold for 'knocked-down' £9m |publisher=Mobile Today |date=20 February 2008 |accessdate=4 July 2017 |archive-date=22 August 2016 |archive-url=https://web.archive.org/web/20160822192847/http://www.mobiletoday.co.uk/News/5416/Dial-A-Phone_sold_for_%E2%80%98knocked-down%E2%80%99_%C2%A39m.aspx |url-status=dead }}</ref>
In July 2010, Phones 4u partnered with electrical chain Dixons to place 49 concessions inside Currys and PC World stores.<ref>{{Cite news|url=https://uk.reuters.com/article/oukin-uk-dsgi-phones4u-idUKTRE66P2M220100726|archive-url=https://web.archive.org/web/20200213174706/https://uk.reuters.com/article/oukin-uk-dsgi-phones4u-idUKTRE66P2M220100726|url-status=dead|archive-date=13 February 2020|title=DSG to roll out Phones 4u shop-in-shops in Currys|newspaper=Reuters|date=26 July 2010}}</ref> This number increased to over 100. However, following a merger between Dixons and rival phone shop, Carphone Warehouse, it was announced that this partnership would not be renewed.{{Citation needed|date=September 2014}}
[[File:Phones 4 U, Briggate (11th April 2011).jpg|thumb|right|A branch of Phones 4u on Briggate in Leeds.]]
The group was acquired by private equity group BC Partners in March 2011. The deal, estimated to be more than £600 million, was agreed several months after talks with a United States private equity owner ended.<ref>{{cite news|title=Phones 4u sold in private equity deal|url=https://www.theguardian.com/business/2011/mar/18/phones4u-sold-private-equity-deal|newspaper=The Guardian | location=London|first=Dan|last=Milmo|date=18 March 2011}}</ref> In April 2012, Phones 4u's contract with provider Three UK was terminated.<ref>{{cite web |author=Mobile Today |url=http://www.mobiletoday.co.uk/news/industry/20747/Three-and-Phones-4u-part-company.aspx |title=Three and Phones 4u part company |publisher=Mobile Today |date=24 April 2012 |accessdate=10 February 2015 }}{{Dead link|date=December 2025 |bot=InternetArchiveBot }}</ref> In January 2014, O2 ended their contract with Phones 4u.<ref>{{cite web |last=Campelli |first=Matthew |url=http://www.mobiletoday.co.uk/news/industry/28044/o2-and-phones-4u-ceases-trading-relationship.aspx |title=O2 and Phones 4u ceases trading relationship |publisher=Mobile Today |date=31 January 2014 |accessdate=10 February 2015 }}{{Dead link|date=December 2025 |bot=InternetArchiveBot }}</ref>
===Administration === On 15 September 2014, Phones 4u entered administration, after the two remaining suppliers EE and Vodafone terminated their contracts. Stores closed, and both the Phones 4u and Dial-A-Phone websites were taken offline, pending a decision by the administrators.<ref name="news.sky.com">{{cite web |date=15 September 2014 |title=Retailer Phones 4u 'Forced Into Administration' |url=http://news.sky.com/story/1335864/retailer-phones-4u-forced-into-administration |accessdate=6 March 2015 |publisher=News.sky.com}}</ref><ref name="Phones 4u Closure">{{cite web |date=14 September 2014 |title=Phones4U closure |url=https://www.evernote.com/shard/s34/sh/884af390-4a7c-42b6-bc36-00ba6fbae518/a5808f5440f8fa66d13632727856ecbb |accessdate=6 March 2015 |publisher=Evernote.com}}</ref>
On 19 September 2014, Vodafone reached an agreement with the administrators of Phones 4u to take over and rebrand 140 stores. It was also revealed that 628 employees at the head office in Newcastle-Under-Lyme would be made redundant.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-29286694|title=Vodafone takes on Phones 4U stores, but 628 HQ jobs to go|publisher=BBC News|date=19 September 2014|accessdate=19 September 2014}}</ref>
On 22 September 2014, EE reached an agreement with Phones 4u's administrators to take over and rebrand 58 stores, while Dixons Carphone revealed that they would transfer 800 employees to its Currys and PC World stores.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-29306949|title=EE to take over 58 Phones 4U stores|publisher=BBC News|date=22 September 2014|accessdate=22 September 2014}}</ref>
On 23 September 2014, administrators PwC announced that close to 1,700 jobs would be lost.<ref>{{cite news|url=http://www.hrgrapevine.com/markets/hr/article/2014-09-23-phones-4u-1700-jobs-still-to-go-despite-ee-vodafone-and-dixons-takeovers|title=Phones 4U - 1,700 jobs still to go despite EE, Vodafone and Dixons takeovers|publisher=HR Grapevine|date=23 September 2014|accessdate=27 October 2014}}</ref>
On 14 October 2014, EE announced that it would acquire mobile virtual network operator Life Mobile from Phones 4u's administrators.<ref>{{cite web |last1=Pearce |first1=James |url=http://www.mobilenewscwp.co.uk/2014/10/14/ee-to-complete-life-mobile-purchase/ |title=EE to complete Life Mobile purchase | Mobile News Online |work=Mobile News Online |publisher=Mobilenewscwp.co.uk |date=14 October 2014 |accessdate=10 February 2015 |archive-date=26 October 2014 |archive-url=https://web.archive.org/web/20141026024259/http://www.mobilenewscwp.co.uk/2014/10/14/ee-to-complete-life-mobile-purchase/ |url-status=dead }}</ref><ref>{{cite web|last=Ehrenberg |first=Billy |url=http://www.cityam.com/1413303548/ee-buys-phones-4us-mobile-business-under-5m |title=EE set to buy Phones 4U's mobile business for under £5m | City A.M |publisher=City A.M. |date=14 October 2014 |accessdate=10 February 2015}}</ref>
=== Post-administration litigation === In May 2022, a trial began in the High Court as a result of legal action brought by the administrators of Phones 4u, against various UK and foreign companies from the UK mobile telecoms sector.<ref name=farmer/>
The lawsuit broadly alleged those companies engaged in unlawful collusion in breach of UK and EU antitrust law, resulting in the collapse of Phones 4u, and additionally alleged EE breached its contract with Phones 4u. The lawsuit requested a remedy of compensatory damages from the defendants.<ref name=farmer>{{cite news |last=Farmer |first=Brian |url=https://www.standard.co.uk/news/uk/lawyers-vodafone-high-court-orange-court-of-appeal-b1000374.html |title=Phones 4u begins court fight with networks after going into administration |work=Evening Standard |date=16 May 2022 |access-date=1 October 2024}}</ref>
In November 2023, the court handed down its judgement, finding for the defendants and dismissing all of Phones 4u's claims.<ref>{{cite web |last=Speed |first=Richard |url=https://www.theregister.com/2023/11/14/uk_telcos_cleared_of_collusion/ |title=UK telcos didn't collude to put Phones 4u out of business – judge |work=The Register |date=14 November 2023 |access-date=1 October 2024}}</ref>
Phones4u appealed the judgement to the Court of Appeal, which dismissed the appeal on all grounds in July 2025.<ref>{{cite web |url=https://www.ispreview.co.uk/index.php/2025/07/high-court-rejects-phones-4u-appeal-in-damages-claim-vs-o2-ee-and-vodafone-uk.html |title=High Court Rejects Phones 4u Appeal in Damages Claim vs O2, EE and Vodafone UK UPDATE |date=11 July 2025 |website=ispreview.co.uk |access-date=17 July 2025}}</ref>
In September 2025, the company's administrators confirmed that it had ceased its claims and reported the litigation costed it £80 million in legal fees.<ref>{{Cite web |last=Martin |first=Ben |date=1 September 2025 |title=Phones 4U gives up six-year court battle that cost it £80m |url=https://www.thetimes.com/business-money/companies/article/phones-4u-gives-up-six-year-court-battle-that-cost-it-80m-n7s7hb0d6 |website=The Times}}</ref>
==Former corporate structure== The 4u Group consisted of the following entities:
* Phones 4u Limited — high street and online retailer * Life Mobile Limited — a mobile virtual network operator, running on EE * Dial-a-Phone — online retailer * Policy Administration Services — mobile phone insurance provider * 4u Wi-Fi Limited * Jump 4u Limited * MobileServ Limited * Phosphorus Acquisition Limited * Phones 4u Group Limited * Phones 4u Finance plc
==Sales and service== Before 2008, complaints surfaced about shoppers feeling pressured by hard sell tactics for phone insurance, negative service perceptions and high staff turnover.<ref name=developmentfirsttraining>{{cite web|url=http://www.developmentfirsttraining.com/phones_4u.htm |archiveurl=https://web.archive.org/web/20110821023458/http://www.developmentfirsttraining.com/phones_4u.htm |archivedate=21 August 2011 |title=Development First Training Ltd. - Phones 4u Case Study |publisher=Wayback Machine |date=21 August 2011 |accessdate=20 January 2016}}</ref> The retailer retrained staff and eliminated some of its more aggressive practices, including ''street-fighting'', the practice of sales people standing in shop doorways to lure customers.<ref name=developmentfirsttraining /><ref>{{cite web |author=Mobile Today |url=http://www.mobiletoday.co.uk/News/6151/Phones_4u_retrains_3,000_of_its_staff_in_next_80_days.aspx |title=Phones 4u retrains 3,000 of its staff in next 80 days |work=Mobile Today |date=26 June 2008 |accessdate=6 March 2015 |archive-date=18 January 2016 |archive-url=https://web.archive.org/web/20160118001933/http://www.mobiletoday.co.uk/News/6151/Phones_4u_retrains_3,000_of_its_staff_in_next_80_days.aspx |url-status=dead }}</ref>
In November 2008, Ofcom found Phones 4u guilty of misleading customers over network coverage, failing to swiftly provide refunds for faulty handsets and offering unfair terms on chequeback schemes. Phones 4u responded with a series of undertakings to prevent recurrences.<ref>{{cite news|title=Phones4U 'breached consumer laws'|publisher=BBC|date=10 November 2008|url=https://news.bbc.co.uk/1/hi/business/7719957.stm|access-date=25 November 2008}}</ref> The company said 80% of complaints were due to problems in its repair business, rather than sales, which the company was in the process of resolving.<ref>{{cite web |last=Today |first=Mobile |url=http://www.mobiletoday.co.uk/news/industry/6845/Phones-4u-blames-complaints-on-the-repairs-process.aspx |title=Phones 4u blames complaints on the repairs process |publisher=Mobile Today |date=20 November 2009 |accessdate=20 January 2016 }}{{Dead link|date=December 2025 |bot=InternetArchiveBot }}</ref><ref>{{cite web|url=https://blobstreaming.org/|title=Phone Repair Local Business Reviews|website=blobstreaming.org|language=en-US|access-date=3 July 2017}}</ref>
After six months of scrutiny, the Ofcom investigation resulted in minor changes to terms and conditions. Phones 4u subsequently changed its repair provider.{{citation needed|date=February 2012}}
Turnover for the mobile phone retailer grew 22% in 2010, rising from £746m to £911m.<ref>{{cite web|author=Juliette Garside |url=https://www.theguardian.com/business/2011/oct/03/smartphones-good-and-bad-for-phones4u |title=Smartphones good and bad for Phones4u | Business |work=The Guardian |date=3 October 2011 |accessdate=6 March 2015}}</ref> The group employed over 8,000 people worldwide and sold 26 phones every minute.<ref>{{cite news|last1=Bevens|first1=Nick|title=Caudwell sells up for £1.46bn|url=http://thescotsman.scotsman.com/business.cfm?id=1141312006|accessdate=4 July 2017|work=The Scotsman|publisher=Wayback Machine|date=7 August 2005|archiveurl=https://web.archive.org/web/20070311132108/http://thescotsman.scotsman.com/business.cfm?id=1141312006|archivedate=11 March 2007}}</ref> In November 2011 it was reported that despite the company's turnover having increased, the rising cost of providing insurance with smartphones had contributed to a 25% loss of earnings.<ref>{{cite news|title=Phones 4u hit by rise in smartphone claims|url=https://www.theguardian.com/business/2011/nov/16/phones4u-hit-by-rising-smartphone-claims|work=The Guardian|accessdate=19 February 2012|location=London|first=Juliette|last=Garside|date=16 November 2011}}</ref>
==Advertising and sponsorship== Phones 4u was noted for its effective<ref name=utalkmarketing>{{cite web |url=http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=22243&Title=Spooky_Phones_4U_ad_takes_People’s_Choice_award |title=Spooky Phones 4U ad takes People's Choice award |publisher=UTalkMarketing |date=12 October 2011 |accessdate=20 January 2016 |archive-url=https://web.archive.org/web/20120412102848/http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=22243&Title=Spooky_Phones_4U_ad_takes_People%E2%80%99s_Choice_award |archive-date=12 April 2012 |url-status=dead }}</ref> and controversial<ref name=horror/> advertising campaigns.
A shirt sponsorship deal was agreed with Birmingham City F.C. for two seasons, beginning in August 2001.<ref>{{cite web|url=http://www.birminghamcity-mad.co.uk/news/tmnw/3million_shirt_sponsorship_deal__announced_11943/index.shtml |title=£3million Shirt Sponsorship Deal Announced - Birmingham City FC - Singing The Blues |publisher=Birminghamcity-mad.co.uk |date= |accessdate=6 March 2015}}</ref> Phones 4u also sponsored Watford F.C for two seasons starting in 1999.<ref>{{cite web|url=https://www.oldfootballshirts.com/en/teams/w/watford/old-watford-football-shirts-t19.html |title=Watford (The Hornets) Football Shirts |publisher=www.oldfootballshirts.com |date= 16 May 2025|accessdate=13 June 2025}}</ref>
In 2004, the comedy duo Flight of the Conchords featured in a television advert driving up and down Britain singing about the latest offers.<ref>{{cite web|url=https://www.youtube.com/watch?v=EFo9nnmOU_4 |archive-url=https://ghostarchive.org/varchive/youtube/20211219/EFo9nnmOU_4 |archive-date=2021-12-19 |url-status=live|title=Flight of the Conchords - Phones 4u (better quality) |publisher=YouTube |date=12 January 2009 |accessdate=6 March 2015}}{{cbignore}}</ref>
Phones 4u's campaign of 2006 starred a variety of eccentric characters, including "Jack" and "Scary Mary", who needed help with their mobile phones. The adverts were often set at the British seaside and featured the Phones 4u hand gesture{{Clarify|date = January 2016}} for the first time, which would be revived for later campaigns.{{citation needed|date=January 2014}}
In the summer of 2009, Phones 4u and communications agency Adam & Eve launched a new advertising campaign based around social networking, popularity called "Great Deals for Popular People". The theme around the campaign was that the customer needs to have 50 contacts on their phone to get Phones 4u's best deals. In one of the ads, a scout master was displayed with the caption "You may be good with knots, you may be good with children, but there's no way you've got 50 friends on your phone", along with a large "NO" sticker. The campaign met criticism from The Scout Association, and the advert was pulled.<ref>{{cite news|url=https://news.bbc.co.uk/2/hi/uk_news/8102536.stm |title=UK | Ad pulled after scouts complain |publisher=BBC News |date=16 June 2009 |access-date=6 March 2015}}</ref>
In May 2010, it launched the "It's What We Do" campaign. Television adverts showed Bangkok prison guards getting accustomed to a new handset.<ref>{{cite web|last=Banham |first=Mark |url=http://www.campaignlive.co.uk/news/1003666 |title=Phones4u to launch Prison Guards campaign |publisher=Campaign |date=17 May 2010 |accessdate=2 August 2013}}</ref>
In September 2011, the Advertising Standards Authority banned a Phones 4u advert depicting Buddy Christ alongside a range of Android phones with the message "Miraculous deals on Samsung Galaxy Android phones".
The ASA said "although the ads were intended to be light hearted and humorous, their depiction of Jesus winking and holding a thumbs up sign, with the text 'miraculous' deals during Easter, the Christian Holy Week which celebrated Christ's resurrection, gave the impression that they were mocking and belittling core Christian beliefs."<ref>{{cite web|url=http://www.metro.co.uk/news/874693-phones4u-jesus-advert-banned-for-mocking-christianity |title=Phones4U Jesus advert banned for 'mocking Christianity' |publisher=Metro |date=7 September 2011 |accessdate=2 August 2013}}</ref>
Later in October 2011, Phones 4u switched its advertising focus to a broader demographic, spending £5.2m on a horror themed price led promotion called "Missing Our Deals Will Haunt You". The campaign included two television advertisements: one taking inspiration from horror movies, featuring a young girl; with the other making a play on the classic zombie genre.<ref name=utalkmarketing/>
The former advertisement received the most complaints filed with the ASA for any advert in 2011,<ref name=horror>{{cite news|title=Horror-themed Phones 4U advert cleared by regulator|url=https://www.theguardian.com/media/2011/dec/21/horror-themed-phones-4u-ad-cleared|newspaper=The Guardian |location=London|first=Mark |last=Sweney|date=21 December 2011|accessdate=21 February 2012}}</ref><ref>{{cite web|title=Littlewoods Christmas ad attracts more than 450 complaints|url=http://www.digitalspy.co.uk/media/news/a352955/littlewoods-christmas-ad-attracts-more-than-450-complaints.html|author=Andrew Laughlin|date=25 November 2011|accessdate=21 February 2012|work=Digital Spy}}</ref> however the complaints were rejected by the ASA who said "The programmes the advert was screened around were unlikely to be viewed by children."<ref name=horror/><ref>{{cite news|title=Phones4U's ghost advert complaints rejected by ASA|url=https://www.bbc.co.uk/news/uk-16280051|publisher=The BBC | date=21 December 2011}}</ref>
Phones 4u backed its advertising campaigns with television programme sponsorships, including ''Hollyoaks'' and ''Harry Hill's TV Burp''.{{Citation needed|date=March 2015}} On 31 July 2013, it was announced that Phones 4u had secured a five-year sponsorship deal with the Manchester Arena, renaming the arena as the Phones 4u Arena.<ref>{{cite web|last=Ferguson |first=James |url=http://www.manchestereveningnews.co.uk/business/business-news/manchester-arena-signs-deal-phones-5385660 |title=Manchester Arena signs deal with Phones 4u |publisher=Manchester Evening News |date=31 July 2013 |accessdate=2 August 2013}}</ref> In July 2014, it launched the "#FutureYou" campaign. Television adverts featured the DeLorean time machine famous from the ''Back to the Future'' films.<ref>{{cite web|title=Welcome to the #FutureYou - Phones 4u|url=https://www.youtube.com/watch?v=UucLMljiDHg |archive-url=https://web.archive.org/web/20140717224528/http://www.youtube.com/watch?v=UucLMljiDHg |archive-date=2014-07-17 |url-status=dead|website=YouTube|accessdate=15 May 2017|date=17 July 2014}}</ref>
==References== {{reflist|30em}}
==External links== * {{web archive|url=https://web.archive.org/web/20130828070828/http://www.phones4u.co.uk/|title=Official website}}
{{Telecommunications industry in the United Kingdom}}
Category:1996 establishments in the United Kingdom Category:British companies established in 1996 Category:Retail companies established in 1996 Category:Telecommunications companies established in 1996 Category:Retail companies disestablished in 2014 Category:British companies disestablished in 2014 Category:Companies that have entered administration in the United Kingdom Category:Mobile phone companies of the United Kingdom Category:Newcastle-under-Lyme Category:Private equity portfolio companies