MFI

MFI said it was replacing chief executive John Hancock with Mathew Ingle, the managing director of its kitchen wholesale wing Howden. The furniture firm had been hit hard by the slowdown in consumer spending and a slump in the housing market and expected to post a small annual loss. MFI said declining sales had made the company expect its third annual loss in four years. Net retail orders had dropped 31% against a year ago and orders had fallen by as much as 15% since the start of the second half of the financial year.

The firm expects new chief Ingle to review the group’s strategy and repeat his performance at Howden Joinery unit. He is credited with the impressive growth of Howden’s business in just five years. Howden’s operating profits ascended from £9 million in 1999 to £100 million in 2004. He joined the firm in 1995 as managing director. The retailer’s stock value has dropped 30% in the last 7 months as business took a downturn following a series of interest rate hikes which made consumers tighten their belts. The firm also rubbished recent reports that said it had breached its banking covenants. (Source: ABC Money, Oct/05)

MFI is planning the closure of up to 20 stores threatening hundreds of jobs. The move is part of an overhaul of the business which will also see a dramatic shift up-market with the launch of a new kitchen chain and the sale of Sofa Workshop. MFI was also said to be considering pulling out of the bathroom market altogether after sales slumped 40% in recent months.

It is thought that the measures will be announced by chief executive Matthew Ingle as part of his strategic review of the company, which has faced plunging sales across nearly all its divisions. It is believed that MFI is testing the new upmarket kitchen store in a secret warehouse in Doncaster.

The concept, thought to be called Dreamworks, will sell kitchens in the £8,000 to £12,000 range, which is well above MFI's current price range. MFI recently sold its French kitchens Hygena Cuisines to Nobia for £92 million. (Source: Mail on Sunday, Feb/06)

MFI has now ceased trading and the company's 111 stores have all been closed, with the loss of 1,400 jobs. Phil Duffy, Geoff Bouchier and Paul Clark of MCR were appointed as Joint Administrators to MFI Group Limited on 26 November 2008. Administrators said that it had not been possible to sell the business and told customers with outstanding orders to apply for a refund. Those who paid by credit card or Visa debit card should contact their card providers.

If a customer has paid a deposit or a final payment by credit card or VISA debit card and has not received any product then they should contact their credit card provider to initiate a refund of sums paid. The Administrators have agreed a process to ensure that all valid customer refunds will be processed as quickly as possible.

If a customer has paid by credit card or VISA Debit card and has received an incomplete delivery, the customers should contact their credit card provider to initiate a partial refund of their order. The Administrators will liaise with the merchant service provider to confirm short deliveries and to ensure all valid refunds are issued as quickly as possible.

If a customer has paid by cash, cheque or non-visa debit card (includes switch, solo and maestro) and has not received a delivery, the Administrators currently expect to be able to issue a full refund from the surplus funds held by the merchant service provider. It is not yet possible to predict the timing of such refunds although discussions with the merchant service provider are taking place in order to obtain an interim release of the surplus. Customers should complete the proof of debt form available from: www.mfi.co.uk and submit to the Joint Administrators at: mfi@mcr.uk.com or 43-45 Portman Square, London, W1H 6LY.

Customers who made arrangements to pay for their order using any form of interest free or other credit agreement with Black Horse and who have not received a delivery are unaffected by this process. This credit has not been drawn down by MFI Group Limited. Email: blackhorse-enquiries@mfi.co.uk to confirm cancellation of your credit agreement.

Customers who have finance agreed with Black Horse but who received an incomplete delivery will be contacted by the Administrators in order to arrange a reduction in the amount owed to the credit provider. The Administrators have already initiated a process to contact such customers. The Administrators estimate that the main consumer credit supplier is currently holding sufficient cash in order to implement and finance the expected reductions. Again, the Administrators have implemented a process to ensure that all valid claims are dealt with quickly. If you have a specific query in this regard, email: blackhorse-enquiries@mfi.co.uk.

Customers seeking information on product warranties/guarantees
If your product was branded Diplomat or was an MFI own brand product you may have a claim in the Administration if the product has failed during the standard warranty period. Send details of your claim to the Administrators office.

If you have an appliance which was made by another manufacturer, it may be covered by the manufacturers’ warranty. You should contact the manufacturer directly.

If you purchased an extended warranty through a third party such as AIG and the product is still within its warranty period, then contact the third party directly.

General customer queries: 01405 744 813

Mon - Sat between 9.00am and 6.00pm

You can also email your query to: customer.services@mfi.co.uk.

Alternatively you can email the Administrators’ representatives at: mfi@mcr.uk.com.