Phones 4U says Vodafone will take 140 of its stores

LONDON (Reuters) - Phones 4U's [PHONE.UL] administrators PwC said Vodafone UK (VOD.L) had agreed to take on 140 of its stores on Friday, saving 887 jobs, while a further 628 staff will be made redundant.

The mobile phone retailer, which has 550 standalone stores and 5,596 employees, fell into administration on Monday after the country's biggest mobile operator EE joined Vodafone in not renewing its network agreement.

The adminstrators said discussions to sell parts of the business were continuing.

The Phones 4U stores will be re-branded as Vodafone stores over the coming weeks following a period of transition, the administrators said. The deal remains subject to court approval on Monday and the terms were not revealed.

"While this deal remains subject to the approval of the UK courts, we are confident that this represents the best available transaction for the Company’s creditors," said Rob Hunt, joint administrator and PwC partner.

The announcement follows one on Thursday which said 800 Phones 4U staff would be transferred to Dixons Carphone (DC.L).

(Reporting by Elaine Hardcastle; Editing by Mark Potter)