AROUND 110 jobs are being cut at one of John Caudwell's former companies.

The Mobile Phone Repair Company (MPRC) in Crewe is shedding the positions after the firm lost a key contract with another part of Mr Caudwell's former empire – Newcastle-based retailer Phones4u.

Phones4u has dropped MPRC in favour of A Novo in Norwich and SBE in Ashford, Kent.

Employees at the Weston Road company have been offered the chance to take up positions at A Novo or SBE under so-called TUPE transfers, where pay and conditions are protected.

One MPRC employee, who did not want to be named, said: "Morale is very low and there's not much work getting done.

"Some of the workers here are Poles, so they may want to go down south, but that's not much good for the rest of us.

"Originally we were told 40 per cent of the jobs would be going on August 26 and that another 40 per cent would going in November, but that's now been brought forward to September.

"With all the stories about job losses at Wedgwood and JCB this is really bad news for the area."

At the moment, about 140 people work at MPRC. About 30 jobs will stay at Crewe to carry out work for parent company 20:20 Mobile Group, which is also based in Weston Road. The balance will be lost to A Novo and SBE.

Commenting on the loss of the Phones4u contract, MPRC managing director Martin O'Grady said: "This comes down to a simple question of viability.

"MPRC operates in a very price sensitive marketplace and other competitors made a proposition in terms of price we could not match.

"This is not a reflection of the level of service or the professionalism of our staff, which are both first class, but simply a case of economics.

"We have outlined the options available to staff, which includes a TUPE transfer to the new companies servicing the contract, and some existing vacancies within the group.

"I would like to pay tribute to the excellence of their work and their loyalty to MPRC."

Stoke-on-Trent tycoon John Caudwell sold his mobile phone group to U.S. venture capitalist Doughty Hanson in 2006 in a £1.46 billion deal.