RETAILER Phones 4u is to go into administration, placing more than 5,500 jobs at risk, including staff in Runcorn.

The chain said its 550 stores would all be closed today pending a decision by the administrators on whether business can be reopened for training.

The company blamed the move on mobile network EE’s decision not to renew its contract in September next year.

Phones 4U said the decision 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 and has a shop at Forest Walk, Runcorn Shopping Centre.

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."

Staff have been asked to report to work as normal this morning as they will be briefed by management.

The company says all existing discount deals will still be honoured.

However orders of phones yet to be dispatched will be cancelled and refunds automatically paid to customers.