Phone retailer Phones 4U is to be put into administration today, following a decision by the EE and Vodafone mobile networks not to renew their contracts with the chain.

The move will put 5,596 jobs at risk across the company, which owns 550 stores.

"If mobile network operators decline to supply us, we do not have a business," said Phones 4U boss David Kassler, adding that it was a “very sad day” for customers and staff.

Stefano Quadrio Curzio, from BC Partners, said: "Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4U over more than six months. Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4U no time to develop commercial alternatives.

"EE's decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the board with no alternative but to seek the administrator's protection in the interests of all its stakeholders."