Bayley buys back Fonehouse

Fonehouse managing director Clive Bayley (pictured) has bought Fonehouse Holdings, the original holding company for the Fonehouse retail chain, through new subsidiary company Fonehouse Group.

Bayley put Fonehouse Holdings ino administration last week, in an attempt to get out of four troublesome shop leases. He had already swapped 12 of Fonehouse's original 16 stores into the new company,set up in March.

Fonehouse Group has bought the remaining assets of Fonehouse Holdings, and shed its liabilities, including the four shop leases.

The move saves 91 jobs, the company claimed.

Fonehouse Group is running the burgeoning Fonehouse franchise programme, which has so far seen 24 dealers join up to trade under the brand.

Bayley had a 98 per cent share in Fonehouse Holdings; the remaining two per cent was owned by Fonehouse Ltd, which Bayley owns outright. Fonehouse Group is also owned by Fonehouse Ltd.

Insolvency specialist Leonard Curtis was appointed to oversee the sale of Fonehouse Holdings last week.

Neil Bennett, of administrator Leonard Curtis, said: "The mobile phone business is currently being affected by two key drivers: the credit crunch which means that fewer upgrades are happening, and an almost saturated UK market. The directors believe that this is a business that can me made to work."