Phones 4u owner BC Partners is exploring all options for the retailer following Vodafone’s decision to not renew its contract with the firm.
Phones 4u chief executive David Kassler told the firm’s lender – during a call last Monday – that deep cost-cutting, a sale or merger were among the options being considered, The Sunday Times reported.
The mobile phones retailer was thrown into turmoil when Vodafone, which accounts for around 27% of its contract sales, opted to sign a deeper contract with rivals Dixons Carphone rather than renew its Phones 4u contract, which expires in February next year.
Vodafone’s move will reduce Phones 4u’s trading relationships to just EE, Virgin Mobile, its own Life Mobile brand as well as a number of smaller carriers.
However, EE has instigated a review of its indirect sales which could impact its relationship with Phones 4u.
BT, Vodafone, EE, O2 and Three are all being tipped as likely bidders should Phones 4u owner BC Partners decide to sell the business.
The value of Phones 4u’s debt, listed on the Irish stock exchange, plunged from 87p to 30p following Vodafone’s decision to not renew its contract with the firm last week.