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Local jobs among thousands at risk after Phones 4u plunges into administration

LONDON, ENGLAND - SEPTEMBER 15:  A general view of  Phones 4u shop on Oxford Street on September 15, 2014 in London, England. The Phones 4u retailer which is owned by private equity firm BC Partners, went into administration on Sunday night. The closures are likely to result in the loss of almost 6000 jobs across the UK.  (Photo by Dan Kitwood/Getty Images)
LONDON, ENGLAND - SEPTEMBER 15: A general view of Phones 4u shop on Oxford Street on September 15, 2014 in London, England. The Phones 4u retailer which is owned by private equity firm BC Partners, went into administration on Sunday night. The closures are likely to result in the loss of almost 6000 jobs across the UK. (Photo by Dan Kitwood/Getty Images)

Thousands of Phones 4u employees have been left “heartbroken” after the retailer plunged into administration.

Up to 5,600 jobs are now at risk across the UK as talks get under way to allow the business to reopen for trading.

More than 500 stores remained closed today, and in Tayside, Fife and Stirling 64 people face losing their jobs with just over a third of these based in Dundee alone.

The shock collapse of Phones 4u comes after network operators EE and Vodafone announced they would not be renewing their contracts next year.

The firm has now been forced appoint administrators from PwC as it struggles to come to terms with the impact this could have on business.

Phones 4u chief executive David Kassler described it as a “very sad day” for customers and staff.

He said: “If the mobile network operators decline to supply us, we do not have a business.

“A good company making profits of more than £100 million, employing thousands of decent people has been forced into administration.”

Vodafone has denied any claims it behaved inappropriately and said it offered the retailer “repeated opportunities” to negotiate more competitive terms.

EE said its decision was driven by “uncertainty” over the firm’s future.