Phones4U had debts of £635 million when it ceased trading

EE has agreed to pay £120 million to former mobile retailer Phones4U, following a ruling in the High Court.

EE will make the payment to the administrators of the now defunct chain of mobile phone shops, to cover commission on mobile contracts sold by the former retailer.

“Since 2015 the administrators have separately made allegations that EE and other mobile network operators colluded to procure P4U’s insolvency. We dispute these allegations vigorously and to date no proceedings have been issued,” BT said in a statement.

According to a report in the Daily Telegraph, Phones4U owed over £630 million when it was declared bankrupt. Phones4U went under when a host of network operators pulled out of the firm, opting to sell their contracts directly.

The announcement comes during a frenetic period for EE’s parent company, BT, in which it announced 13,000 job cuts and that it intended to quit its London headquarters, in an attempt to save £1.5 billion over the next 3 years.