Private equity mismanagement

 
Its business plan was at the mercy of the few

 
It didn’t have a clear path to survive and grow

 
Phones 4U became famous for ‘churning’ customers from one network to the next

 
The company's demise can be traced back to 2011 when it was sold to private equity firm BC Partners

 
Phones 4u borrowed £200m to pay BC Partners a dividend, allowing investors to make a 30 per cent return on their initial investment

 
If the likes of EE, O2, Three and Vodafone didn't sign contracts to let Phones 4u sell on their behalf then it would be in trouble. With Phones 4u that's exactly what happened.

 
Mobile networks smelled blood as O2, Vodafone and then EE all refused to renew contracts with Phones 4u, leaving it with no product to sell

 
But with the financial position it was in, Phones 4u had perilously little space for manoeuvre.