MOBILE phone retailer Phones 4U, which has a shop in Yate, has gone into administration.

The chain closed all 550 stores on Monday (September 18) after what it called a shock decision by mobile network EE not to renew its contract on Friday.

The pull out follows a similar move by Vodafone earlier this month. Both companies are said to have seen rising sales directly to customers and no longer a middle man or sales firm to explain each product.

A customer notice, signed ‘the heartbroken Phones4U team, displayed on the door of Yate’s East Walk branch said: “Following the unexpected decision of EE and Vodafone to withdraw supply from Phones4U, we regret that this store is currently closed.

“Please accept our apologies and we will update you as soon as possible.”

Phones4U employs 5,596 jobs. It said it would continue to pay staff until further notice and customers with established mobile phone contracts would not be affected. However, anyone who has ordered a phone and has not yet received it is advised to call a customer service line set up on Monday.

David Kassler, chief executive of Phones 4U, said it was a ‘very sad day’ for customers and staff.

"A good company making profits of over £100m, employing thousands of decent people has been forced into administration," he added.

A spokesperson for EE said the decision not to renew its contract with Phones 4U was "driven by developments in the marketplace that have called into question the long term viability of the Phones 4U business".

BC Partners, which owns Phones4U, said EE's contract was due to expire next September, a full year from now.

Vodafone rejected any suggestion it behaved inappropriately at any stage during negotiations.

A spokesman said: "Phones 4U was offered repeated opportunities to propose competitive distribution terms to enable us to conclude a new agreement, but was unable to do so."