Phones 4u

We were appointed over certain companies as joint administrators within the Phones4U group (a large independent retailer of mobile phones and accessories) as summarised in the file attached here.

Further information and contact details are available using the options at the top of this page, including more detailed information of the key transactions that occurred following our appointment in the “background” tab. 

The administrations of the Phones4U group are primarily continuing due to ongoing litigation. Depending on the outcome of the litigation, funds may become available to declare and pay a final dividend to the secured creditors. A brief summary of the litigation is provided below. 

On 18 December 2018, Phones 4U Limited (“P4U”) issued proceedings in the English High Court against various telecommunication companies on the grounds that each defendant was party to an agreement and/or decision and/or concerted practice in breach of EU and/or English competition law.

The defendants denied all the substantive allegations made by P4U in its particulars of claim. Pursuant to an order made by Mr Justice Roth in October 2020, the litigation was split into two parts, with the first trial focused on the issues of infringement and breach and the second trial (which would take place only if P4U was successful in all or part of its claims in the first trial) to be focused on the issues of causation and quantum. The first trial was heard before Mr Justice Roth between May and July 2022, with the judgment handed down on 10 November 2023 (the "Judgment"). The Court rejected all of P4U’s claims for breach of competition law and the separate claim against EE for breach of contract. 

Following the issue of the Judgment, a consequential hearing took place on 19 December 2023 to consider: (i) P4U’s application for permission to appeal; (ii) the basis of costs and interest payable by P4U to the defendants; and (iii) the defendants’ applications for on-account payments. 

On 28 December 2023, amounts totalling £37.3m were paid to the defendants out of the designated security account in accordance with the Judge’s ruling. The balance of the security account will be applied towards payment of the defendants’ costs, once agreed or determined via detailed assessment. The next steps in the litigation are dependent on the outcome of the permission application to the Court of Appeal, including the scope of any such appeal. As is the nature of complex litigation, further delays may occur.

On 1 February 2024, P4U filed an application with the Court of Appeal for permission to appeal certain aspects of Mr Justice Roth’s decisions. 

On 15 February 2024, the respondents filed submissions opposing P4U’s permission application.

On 26 March 2024, the Court of Appeal issued an order granting P4U permission to appeal on Grounds 1 to 5 and 7 (concerning, in broad terms, the competition law claims). Permission was denied in respect of Ground 6 (concerning the breach of contract claim against EE Limited) and Ground 8 (concerning the post-judgment interest rate applicable to certain Defendants’ costs). 

Following the order from the Court of Appeal, dated 26 March 2024, granting permission to appeal certain aspects of Mr Justice Roth’s decision, P4U filed its skeleton argument on 10 April 2024.

The respondents were due to file their skeleton arguments by 28 June 2024.

The appeal hearing has been listed to take place over five days during the fortnight commencing 19 May 2025.

Copies of the public documents relating to the litigation may be found at https://www.aldanmanagement.com/phones4u.

Further details on the progress of the administrations can be found in our progress reports here, or by contacting Sarah Robson on sarah.robson@pwc.com for P4U related matters and Miki Jowett on mike.jowett@pwc.com for matters relating to Policy Administration Services Limited only.

David James Kelly, Robert John Moran and Paul David Copley have been appointed as joint administrators of Phones 4U Limited. 

David James Kelly and Robert John Moran have been appointed as joint administrators of MobileServ Limited, Phosphorus Acquisition Limited, Phones 4 U Group Limited and Phones4U Finance plc to manage their affairs, business and property as their agents and act without personal liability.

David James Kelly and Douglas Nigel Rackham have been appointed as joint administrators of Policy Administration Services Limited to manage its affairs, business and property as their agents and act without personal liability.

David James Kelly and Douglas Nigel Rackham have been appointed as joint administrators of Phosphorus Holdco Plc to manage its affairs, business and property as their agents and act without personal liability.

All are licenced in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales.

The joint administrators and joint liquidators are Data Controllers of personal data as defined by the Data Protection Act 1998. PricewaterhouseCoopers LLP will act as Data Processor on their instructions. Personal data will be kept secure and processed only for matters relating to the administrations and liquidations.

The joint administrators and joint liquidators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics