Administrators appointed to troubled mobile phone retailer Phomes4U have not ruled out reopening the firm's stores.
Phones4U, which was founded in the 1980s by entrepreneur John Caudwell in Staffordshire where it is still headquartered, was placed into administration after EE withdrew its supply of phones to the chain.
The move by EE, whose current contract with Phones 4U does not expire until September 2015, follows a similar announcement by Vodafone earlier this month.
Robert Hunt, Ian Green and Robert Moran, from financial services firm PwC, have been appointed as administrators to Phones 4u Ltd and Life Mobile Ltd which is the company's own network operator.
Phones4U has a turnover of £1 billion and employs around 5,600 staff across 720 stories and concessions in Dixons Carphone Warehouse outlets and the news could affect hundreds of staff across the Midlands.
Mr Hunt said: "This is a very sad day for the business and the many people working there.
"In light of our impending appointment, the directors understandably took the decision to close all the shops today and sent many staff home.
"Our initial focus will be to quickly engage with parties who may be interested in acquiring all or part of the business and to better understand the financial position and options for the company. The stores will remain closed while we have these conversations.
"We will also be talking to network operators and suppliers and trying to access funds to pay for the costs of the business, including wages.
"These conversations will determine whether we can re-open stores and trade and also if and when we can pay the arrears of wages to employees.
"Our hope is that we will be able to pay all the outstanding wages arrears."
