It is sad, however there had been rumours for a while...
It's a place I've never had a good experience in (when looking at phones for myself/family/friends). The way that they deal with potential customers from the few stores I have been in, granted it probably wasn't the same nationally, but the forceful attitude and pushiness from the sales people was worrying!
o2 pulled out, followed by Vodafone leaving just EE as their only network "on side", now they've pulled out the company has no where to go.
I do feel sorry for the people who have ordered an iPhone through them though, as nothing is clear what happens now, other than the fact stores won't be opening this week - leaving people expecting to collect their new iPhones on launch day at a complete loss as to what to do and where to go until more clarity over the situation is given by the administrators.
What is strange, the website STILL works and you can STILL order phones on there that you may/may not get, surely the website should have been changed and no online sales permitted for legal reasons?!