The announcement was made late on Friday night. The jobs of almost 6,000 staff are now on the line, with Phones 4u telling employees to report for work this morning in order to be briefed by management. However its 550 standalone stores will not be open.

Phones4u described the decisions by both networks not to renew their current contracts with the retailer as ‘unexpected’ and ‘a complete shock to the business’.

In a statement, the company said: ‘However, following the decisions of Vodafone and EE, Phones 4u has no option but to seek the appointment of administrators from PwC.

'Phones4u stores will be closed pending a decision by the administrators on whether the business can be reopened for trading.’

David Kassler, chief executive of Phones 4u, said: ‘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 £100m, 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 withdrawal of reseller status from EE and Vodafone follows the cancellation of the O2 contract for similar services earlier this year.
 
PwC said in a statement: ‘In relation to Phones 4u's statement yesterday, the directors of the company are today seeking to appoint partners and directors from PwC as administrators. No further comment will be made by PwC unless we are appointed by the Court as administrators.’

A spokesperson for EE said the decision not to renew its contract with Phones4u was in line with its strategy of focusing on its direct channels and ‘driven by developments in the marketplace that have called into question the long term viability of the Phones4u business’.