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UPDATE 3-UK's EE to buy 58 stores from Phones 4u for 2.5 mln stg

Mon, 22nd Sep 2014 23:56

(Adds Dixons interest to buy 50 to 100 Phones 4u stores)

LONDON, Sept 22 (Reuters) - Britain's biggest mobileoperator EE has agreed to buy 58 stores from retailer Phones 4u for 2.5 million pounds ($4 million), after theretailer was placed in administration a week ago.

Last week, rival mobile operator Vodafone UK announced the takeover of 140 Phones 4u stores, which theretailer's administrator PwC said on Monday was worth 12.4million pounds, and retailer Dixons Carphone agreed totake on 800 Phones 4u employees.

"We can confirm that we have agreed with the Phones 4uadministrator to purchase 58 stores, safeguarding 359 jobs,subject to court approval," EE said in a statement, which wasalso confirmed by PwC.

Phones 4u entered administration on Sept. 15 after its lastremaining network client EE decided against renewing itscontract.

As part of EE's deal, 58 stores - without their inventories- and their employees will transfer to EE with immediate effect,and shops will be re-branded to EE. Most of them are expected toopen in the next week, EE said.

"We consider that this represents the best potential outcomefor creditors in the circumstances for these stores," PwC said.

The administrators said late on Monday that 362 Phones 4ustores would be closed and almost 1,700 employees maderedundant. Another 720 employees have been retained in the shortterm to assist with the closure programme.

"It is a very sad day for the staff working at thoselocations and our thoughts are with them," PwC said in astatement.

Dixons Carphone plans to make a statement on Tuesday that itremains interested in acquiring 50 to 100 shops from Phones 4u,Sky News reported.

Dixons Carphone is finalising a list of the stores it isinterested in acquiring, and intends to negotiate directly withthe properties' landlords once they have been closed down, thebroadcaster said. (http://bit.ly/1tVVYbE) (1 US dollar = 0.6116 British pound) (Reporting by Karolin Schaps and Supriya Kurane; editing byJason Neely and Richard Chang)

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