Forums Forums National News Furniture chain MFI closes down

Administrators at furniture retailer MFI say the firm has now ceased trading, with the loss of 1,400 jobs.

The company's 111 stores have now all been closed.

The administrators said that it had not been possible to sell the business and customers with outstanding orders should seek refunds.

MFI went into administration in November as the downturn in the housing market took its toll on demand for new kitchens and bedrooms.

MFI has seen sales fall in recent years, as it has faced increased competition from newer rivals such as Ikea.

The administrators could not say what redundancy payments would be made to the staff who had lost their jobs

Refunds offered

Customers with outstanding or incomplete orders have been advised to apply for a refund.

MFI: A history

Those who paid by credit card or Visa debit card should contact their card providers.

For customers who paid by cash, cheque or non-Visa debit cards, the administrators say they expect to issue a full refund by drawing on about £30m which has been frozen in various credit card company accounts.

MFI's collapse has wider ramifications.

A huge warehouse used by MFI but run by logistics firm DHL will close on 23 February if a buyer is not found.

The distribution centre, at Thorne, near Doncaster, employs 350 people.

DHL said it would seek to redeploy as many staff as possible, but had so far found new posts for only 35 people.

oooooooo dear

BYE BYE

Good, that will save me from sore thumbs and wondering were all the odd left-over bits of chipboard went. I did ask once and was told that the "odd bits" were packing pieces!

Made For Idiots lol goodbye fairwell

good bye great loss as some of us worked for them and was a brill job they not even said anything about the huge delivery center that has been shut in warrington either were me and jonah worked that shut down over 3 weeks ago and hundreds of guys out of work there 2

should of made better quality furniture, idiots

sristeve - that is pretty crap - sorry mate.
I read yesterday at least 10 more high street chains could topple in this latest recession. Could be scare mongering of course...

Agreed mate, what they made was ok, but for the money they charged you could get better.

That's all it is. The media is going ballistic over this, never seen anything like it since Sept 11th 2001.

I'm not so sure. Alot is riding on this years Christmas sales figures. Many high street shops operate at a loss for long parts of the year and make all their profits from October to new year. If they haven't sold enough this Christmas to remain insolvent, they won't be getting any new credit from the banks and will fold.
Other newer high street brands have been following an aggressive buisness plan where they've been staking a claim on the high street, keeping a high profile and market share by opening and running outlets at an operating loss, with the help of a few profit making shops, and a line of credit from the bank. Again, without the banks funding they're going to go tits up.

Next year should be very interesting on the high street.

Judging by this week, they'll be at least making some kind of profit. Went to Tescos and up to The Trafford Centre today. Never seen car park full there before.

I think mfi really stood for monkey flooded instrument

Looks like Zavvi is next on the chopping block...

http://news.bbc.co.uk/1/hi/business/7798973.stm

Yeah, heard this one the radio this afternoon

They reckon that all this qill continue on through 2009, but will only be the small companies that will experience difficults.

Yeah right !!

lol