Former Phones 4U directors could soon face legal probe into their conduct led by a leading US legal firm.
The mobile retailer’s administrator, PricewaterhouseCoopers (PwC), appointed Quinn Emanuel Urquhart & Sullivan late last week to investigate what circumstances led to the mobile retailer’s sudden demise leaving thousands of staff without a job.
The law firm has been appointed to examine the conduct of the firm’s directors as well as that of the two mobile phone networks – EE and Vodafone – which ceased business tie-ups with the retailer just weeks before the chain collapsed.
The law firm could initiate legal action against former bosses in case they are found to have breached their fiduciary duties. As according to Sky News, which first reported the development, no evidence yet has been found which proves that the directors of Phones 4U neglected their obligations under company’s law.
Phones 4U fell into administration in September following EE and Vodafone’s decision not to renew the contracts, resulting in nearly 5,600 job losses at 560 Phones 4U stores as well as a further 160 concession outlets.
After PwC’s appointment, Vodafone, EE and Dixons Carphone came forward for the rescue and picked up various Phones 4U assets, managing to preserve more than 2,000 jobs. But near about 3,000 employees were left with no jobs, while several hundred shops were forced to close as only around 520 staff continued to work at Phones4U last month at the time of wind-down of the firm’s operations.
A PwC spokesman confirmed Quinn Emanuel Urquhart & Sullivan’s appointment, but refused to disclose any further details.