Liquidation for 3G Mobile as investment bids fail

MOBILE phone retailer 3G Mobile has gone into voluntary liquidation after attempts to secure new investment in the business failed.

Earlier this month, the chain confirmed the temporary closure of all its stores in Ireland. The company had 27 stores nationwide and employed 150 staff.

A statement from 3G Mobile chief executive Tony Boyle said the move was unavoidable, blaming extremely high rents and inflexible leases at a time of difficult economic conditions. The chain has stores in many leading shopping centres and prime city centre locations. Mr Boyle also said that, as a result of the liquidation, Ulster Bank had been asked to appoint a receiver to 3G Mobile’s distribution company Sigma Telecom, putting 115 jobs in jeopardy.

Sigma Telecom, which distributes mobile, fixed and broadband products, was 3G Mobile’s main creditor and guaranteed a number of its leases.

In his statement issued last night, Mr Boyle said: “The directors of 3G Mobile regret to announce that they have no other option but to place the business in voluntary liquidation. After a long period of negotiations, we were informed, just before Christmas, that a strategic investor would not be proceeding. However, we continued to work hard to secure an alternative which did not prove possible. The result of extremely high rents and inflexible leases, at a time of adverse economic conditions, made this move unavoidable.

“This has had very serious consequences for Sigma Telecom Ltd, our distribution company, and the main creditor of 3G Mobile, which also guarantees a number of its leases. We have sought through discussions with our banks, potential investors and our operator partners to maintain the business, but were unable to reach a successful conclusion, and have asked Ulster Bank to appoint a receiver to Sigma Telecom.

“We have worked extremely hard to save these businesses, and must acknowledge the outstanding commitment of management and staff, and their efforts in attempting to ensure the success of 3G Mobile and Sigma Telecom.”

Mr Boyle, who also heads Sigma Telecom, said that Sigma Wireless Communications, which provides communications products for the emergency services, would not be affected by these developments.

Earlier this month 3G Mobile confirmed the temporary closure of all its stores in Ireland but said it was hopeful that they would reopen. That seems increasingly unlikely now. Customers can get information at 085 2053108 or 085 2055093.

- The move by 3G Mobile has no link to the 3 mobile network, which is owned by Hutchison Whampoa.