Cellphone retailer Wireless Vision is working with turnaround consultancy Alvarez & Marsal as its partner T-Mobile scales back its retail presence, said two sources familiar with the matter.

The wireless telecom giant this summer disclosed it was taking a USD 108m restructuring charge in connection with a plan to shut down some of its dealer and corporate-owned stores in order to focus on what it calls large-format experience stores. The move may leave retailers like Wireless Vision in a lurch since their businesses revolve around T-Mobile, said the first source.

Gemspring Capital Management-backed Wireless Vision may now have to substantially shrink its business and exit leases, said the second source.

T-Mobile said in an SEC filing that it has faced contract termination, severance and lease termination costs and was “evaluating additional restructuring activities associated with our retail initiatives, which are dependent on negotiations with certain counterparties and the expected impact on our business operations.”

Rival Verizon, meanwhile, is selling hundreds of its corporate stores to authorized retailers as part of a wider effort to cut costs.

Wireless Vision, based in Michigan, says it’s the largest authorized T-Mobile retailer in the US with over 450 locations. Other major authorized retailers include Houston-based Connectivity Source and Dallas-based Luna Wireless.

Last year, a syndicate of banks led by Fifth Third Bank agreed to amend a credit facility with Wireless Vision to boost the size of the facility to USD 329m and extend the maturity date to 2030, according to Debtwire data.

Gemspring originally secured private credit financing led by Goldman Sachs Lending Partners when it led a recapitalization of the company in 2021. It later replaced the debt with the bank facility.

Connectivity Source has a USD 160m credit facility led by PNC Bank that matures in February 2028. Luna Wireless, formerly GP Mobile, amended its USD 150m credit facility led by US Bancorp in June to extend the maturity to 2029, according to Debtwire data.

Representatives for Wireless Vision, Gemspring, A&M, T-Mobile, Connectivity Source and Luna didn’t return requests for comment.