Carphone Warehouse’s web-based fulfilment services operation Vanilla Mobile is to cease trading to cuts costs and duplication of resources.
Bosses have written to existing Vanilla dealers informing them of the decision to cease trading from 22 August.
Vanilla provided a range of white label back office support services to dealers, allowing them to focus purely on selling and marketing. Services included credit checking, handset buying and delivery to customers as well access to Carphone's commercial offers.
The move follows a comprehensive review of the affiliate business to ensure there is less duplication of effort and more operational efficiency.
The Carphone affiliate schemes run via e2save and onestopphoneshop will remain unaffected and will continue as normal.
Existing Vanilla dealers are being given the opportunity to join either of the e2save or onestopphoneshop schemes, but they will have to enter into a new agreement.
In his letter to dealers, head of Vanilla Mobile Kevin Cartlidge said: ‘This announcement will, unfortunately, also result in a small number of redundancies and affected employees are currently going through a consultation process to help relocate them to other areas of our business.
‘In the meantime, however, I can assure you that it will be very much 'business as usual' and service levels, that we have worked hard to establish, will be maintained during this transition period.’