Sunday, November 18, 2007

UK Mobile Phone Retailer Goes Bust

The UK based online mobile phone retailer, Phonebox Direct has filed for bankruptcy with reported debts of between £4-10 million. Phone Box had been actively marketing via the internet mobile telephones which offered cash-back inc­entives to customers, providing certain conditions were met by those customers. In a statement on the company's website, it says that the number of customers that were able to comply with the terms and conditions and hence became eligible for the cash-back payments exceeded the company's expectations. The company is therefore no longer in a position to meet its ongoing liabilities to those customers.

This is not the first time a mobile phone retailer has offered cash-back incentives to customers, then filed for bankruptcy before it was obliged to make payments to its customers. Dialamobile, another retailer following the same business model went bust a few months ago. The company was investigated by Trading Standards offices after the collapse.

Source:http://www.cellular-news.com

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