More than 500 Phones 4u stores have been closed after the retail chain plunged into administration, putting 5,600 jobs into jeopardy.

The collapse follows a shock decision by EE to join Vodafone in cutting ties with the retailer, which sells contracts on behalf of the network operators.

A decision is pending from administrators PwC on whether the business can be reopened for trading.

Phones 4u has 59 stores in Scotland, employing around 600 people.

Entrepreneur John Caudwell, who set up the operation in the 1980s before selling it for £1.5 billion in 2006, said he was "sickened and saddened" for the nearly 6,000 staff who work for the Staffordshire-based firm.

In an interview at the weekend, he blamed the "ruthless behaviour" of the network operators for the demise of the business.

Phones 4u said the decision by EE not to renew its contract, which is due to end in September 2015, came as a "complete shock" and meant it would be left without a network partner after Vodafone said it would not extend its agreement.

The company is owned by private-equity firm BC Partners and has 550 standalone stores, employing 5,596 people.

EE said its decision not to renew its contract was in part driven by uncertainty over the long-term viability of Phones 4u.

Vodafone said: "Phones 4u was offered repeated opportunities to propose competitive distribution terms to enable us to conclude a new agreement but was unable to do so on terms which were commercially viable for Vodafone in the current UK market conditions.

"We were told by the Phones 4u management team that they had a number of alternative strategies in place if we could not reach an agreement with them."

Phones 4u chief executive David Kassler said: "If the mobile-network operators decline to supply us, we do not have a business.

"A good company making profits of more than £100 million and employing thousands of decent people has been forced into administration.

"The result will be less competition, less choice and higher prices for customers in the UK."