FIFTY jobs in Gwent are at risk after Phones 4U announced yesterday that they have gone into administration.

The mobile phone company has 21 stores in Wales with eight stores across Newport, Cwmbran, Caerphilly, Blackwood, Abergavenny and Monmouth.

All stores in South Wales closed yesterday and will remain shut pending a decision by the company’s administrator PwC.

Phones 4U, owned by private equity firm BC Partners, closed its 550 stores across the UK yesterday, putting 5,600 jobs under threat.

The closures followed a shock decision made by mobile phone networks EE and Vodafone to withdraw their contracts from Phones 4U, which sells contracts on behalf of network operators – leaving staff in retail stores and head offices ‘heartbroken’.

One Phones 4U employee in Cwmbran said: “Having worked here for two and a half years it’s a big shame. We are all feeling a lot of emotions and if the worst [administration] happens we will all miss working together.”

The company has assured customers that their mobile contracts will remain unaffected, but some are concerned by the closure.

Phones 4U customer Stephen Batty took out his mobile contract in the Blackwood store.

“I think customers will be worried about the cost of their contracts because Phones 4U always offered really good deals which lowered prices,” he said. “I really feel for the staff there. I’m absolutely gutted and they were always so friendly and had helpful customer service.”

Phone 4U chief executive David Kassler said it was “a very sad day” for customers and staff. “If the mobile network operators decline to supply us, we do not have a business,” he said.

“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.”

He said the decision by EE not to renew its current contract, due to end in September next year, came as 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.

All mobile contracts bought through Phones 4U will remain unaffected and the networks customers are signed up to will continue to provide mobile services.