iPhone 6 preorder update: Phones4U to refund payments

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Mobile retailer Phones4U has confirmed all customers who pre-ordered for Apple’s iPhone6, due to be released this Friday, will be refunded in full as the company has slipped into administration.

“Any orders that have not already been dispatched will be cancelled and any payments refunded to customers. Phones 4u apologise for any inconvenience”, the company said in a statement.

Phones4U has however reassured that existing mobile contracts will remain unaffected. The company has also issued a helpline number – 844 8712253- for anyone with questions about their order.

The UK mobile retailer plunged into administration this Sunday after its key mobile supplier EE notified it would no longer continue business relationship with the UK retailer.

The contract in question between Phones4U and leading mobile operator EE, which comprises T-Mobile and Orange, scheduled to end in September next year, was way too important for the retailer as it had lost a similar business contract with Vodafone earlier this month.

The retailer chain, owned by private equity firm BC Partners, currently has 720 outlets, including 550 stores and about 5,600 employees working under it.

Phones4U Chief Executive David Kassler in a statement said the unexpected decision coming from both EE and Vodafone to cut business tie-up with the company comes as a “complete shock” and that if the situation continues then Phones4U will not have a business at all.