MOBILE phone retailer Phones4u has collapsed into administration, putting more than 5,500 jobs at risk - and closing the Northwich store in the process.

The company, which operates 550 standalone stores across the UK, including Northwich town centre, faces an uncertain future after network operator EE joined Vodafone in cutting ties with the retailer.

Stores are closed today, Monday, pending a decision by administrators on whether the business can be reopened for trading.

Phones 4u said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.

The company, which is owned by private equity firm BC Partners, employs 5,596 people.

Phones 4u chief executive David Kassler said last night: "Today is a very sad day for our customers and our staff.

"If the mobile network operators decline to supply us, we do not have a business. A good company making profits of over £100 million, employing thousands of decent people has been forced into administration.

“The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise. The ultimate result will be less competition, less choice and higher prices for mobile customers in the UK.”

Phones4u said it remained a profitable business, with turnover of over £1 billion, underlying earnings of £105 million in 2013 and significant cash in the bank.

It said: "The unexpected decisions by both Vodafone and EE have come as a complete shock to the business.

“The company is in a healthy state and both EE and Vodafone had, until very recently, consistently indicated that they saw Phones 4u as a long-term strategic partner."

All mobile phone contracts bought through Phones4u will remain unaffected and networks will continue to provide mobile services to these customers.

The process of appointing PwC as an administrator is expected to take place later today.

Are you a worker at Phones 4U in Northwich? Call the newsdesk on 01606 813617.