Carphone Warehouse to close UK Best Buy stores

UPDATE, 13:00 GMT: Since news of the shop closure surfaced, Best Buy UK have released a detailed statement on Facebook, answering many questions that customers and staff alike have raised - and denying any firm plans to shut its stores:

"After conducting a thorough strategic review, we have announced that we are considering whether to continue operating Best Buy’s stores and website or whether we will close in the future but at this stage a decision has not yet been made."

So now it seems the future of the stores is up in the air. Whether customers or staff come into the equation remains to be seen - but for now at least, those people that Best Buy care so much about still have jobs.

Whatever Best Buy's ultimate decision, the company states it will honour all commitments for installations, contracts and service agreements.

UK mobile retailer Carphone Warehouse has announced it will close all 11 of its UK Best Buy outlets, putting over 1,100 jobs in limbo. The company did however claim that it would do its best to provide alternative work for all those affected, the BBC reports.

However it isn't necessarily just down to that company, as the UK arm of Best Buy is owned by not only the Carphone Warehouse, but by its US parent company, Best Buy.

Despite being a popular brand in America, turning over more than $16 billion in 2010, Best Buy's UK outlets have failed to turn a profit in their one and a half years of operation.

And with the announcement of the stores closing, Best's Buy's UK staff will be hoping the company's promise on its recruitment advertising holds true: "We're about people. People just like you. Yes we know every company says that, but we mean it. Really!"

While they had initially planned upwards of 200 different outlets throughout the UK, the two firms halted their expansion at 11. Now they look set to throw in the towl, closing all shops in Liverpool, Derby, Bristol, Nottingham, Rotherham, Dudley, Thurrock, Southampton, and three places in the London area - Croydon, Hayes and Enfield.

Reuters also reports that Best Buy is to buy Carphone Warehouse out of its partnership in a joint US mobile phone store venture, for $1.1 billion. This is a more profitable venture for the company and is likely to be a main focus for the firm over the next few years.