Phones 4u’s administrator has made 628 redundancies at its head office as Vodafone steps in to buy 140 stores and take on 887 of its employees.

The remaining 400 employees at the Phones 4U head office in Newcastle Under Lyme will be kept on in order to support administrator PwC as it seeks to sell off additional stores to other interested parties.  

EE is also interested in taking on a handful of stores and is expected to hire any employees working in the stores.

Vodafone and EE have both been eyeing Phones 4u stores after the retailer fell into administration on Monday after both network operators opted not to renew their supply contracts with Phones 4u earlier this month.

Dixons Carphone has also stepped in to save 800 jobs out of the company’s 5,596 after it reached an agreement with PwC to keep on the staff that worked in Phones 4u concessions in Currys & PC World stores.

The remaining store staff have been asked to remain at home until talks are concluded.

PwC partner and joint administrator Rob Hunt said: “It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant. 

“Our thoughts are with those employees at this difficult time.  We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees.

“We wish the transferring employees all the best with their new employer and would like to thank all the Phones 4u staff for their support since our appointment as administrators.

“While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the company’s creditors.”

The deal to transfer employees across to Vodafone remains subject to the British courts approval, which is due to be determined on Monday.