Phones4U is reportedly at the centre of a bidding war between the UK's major mobile networks.
According to Mobile Today, the operators involved plan to break up the retail and distribute its stores amongst them.
discussions between operators have been taking place over plans to break up the retailer and distribute its stores amongst themselves.
A similar deal saw DSGi sell The Link to O2 in June 2006. Its 300 stores were bought for £30m, and then split between networks.
It is thought that the operators are keen to see Phones4U disappear from the High Street due to the intense competition between itself and Carphone Warehouse, as well as their retail presence.
It is reported that Phones4U is not involved in discussions at the present moment.
However, according to the mobile trade magazine, a senior source at a network has suggested that one operator may be considering going it alone in a bid for the retailer.
"There is either an elegant solution of everyone getting a share, or a more aggressive push [by one party] to go alone. The objective [from operators] is the same: bring calm to the market," the source said.
Orange is the only one known to have previously considered purchasing the chain, having made a bid for the retailer at the end of last year, according to the magazine. It is unclear if it intends to reissue it.