Phone staff in £3.5m bonus shock

Mr Caudwell is said to be the 29th wealthiest person in Britain

A businessman surprised his former employees at a farewell party by handing out £3.5m in bonuses.

John Caudwell, who recently sold his Phones4U empire netting an estimated £1bn, handed out gold envelopes with cheques inside to 500 loyal workers.

The bonuses were worth £1,000 for every year worked at the mobile phone firm, with some staff members receiving five-figure sums.

They knew nothing of the bonuses until the party in Staffordshire on Saturday.

The farewell bash, at Mr Caudwell's former headquarters in Stoke-on-Trent, included a champagne dinner and entertainment from Will Young.

'Loyal employees'

It was to mark the recent sale of The Caudwell Group, which employed 8,500 people, to two private equity groups for £1.46bn.

Mr Caudwell, who set up the group along with his brother Brian in 1987, is quoted as saying at the party: "I face the final curtain with some sadness.

"I really wanted to recognise and reward my loyal employees by showing you a token of my appreciation."

Mr Caudwell is Britain's 29th wealthiest person, according to this year's Sunday Times Rich List.