MFI saved by buy-outThe furniture gaint is to continue normal trading
29 September 2008
Furniture retailer MFI is to continue trading as normal after a management buy-out was agreed. This will protect jobs and customer orders, said MFI.
The deal has been agreed with MFI’s owner Merchant Equity Partners (MEP) after several days of talks. It will involve a substantial cash dowry which will protect customer deposits. However, MEP will not remain a shareholder.
MFI is the largest fitted furniture business in the UK, but it has been hit by the growth of stores such as Ikea, B&Q and Homebase.
Confidence in the brand was also damaged by supply chain problems that caused delays and errors to customer orders.
Chief Executive Gary Favell said: ‘I am delighted that we have secured the future of the MFI business through this management buy-out and have the capital to provide continuity and security for our customers, who continue to support MFI as the largest fitted furniture business in the UK.’
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