Mobile phone retailer Allphones has closed 18 stores and made 69 people redundant after it entered into voluntary administration. Allphones Group has 84 stores nationwide, comprising 25 company-owned outlets, seven franchises and the balance licensed to other parties.
The 18 stores closed on Monday were all company-owned stores, with administrators PPB Advisory saying there was not enough funding available to keep the stores trading while it attempted to sell the business. Discussions are now under way with interested parties who could take over the operation of the remainder of the store network.
“Despite financial support from the shareholder and significant efforts to deliver a successful turnaround, the shareholders are unable to continue funding the group’s losses,” a statement from PPB said.
“We are today undertaking an urgent review of Allphone’s business in order to stabilise the current operations and store network, and ensure that the employees impacted by the store closures today are fully supported,” PPB administrator, Phil Carter said, who will be supported by Daniel Walley and Mark Robinson.
“Our immediate priority is to work with Allphones’ staff, franchisees, licensees and other key stakeholders to allow the remaining store network to continue trading on a business as usual basis.”
This story first appeared on Appliance Retailer.
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