MFI Rochdale to close down
Date published: 30 September 2008
The MFI store in Rochdale will still be closed down even though the company has been saved by a management buy-out.
The firm’s chief executive, Gary Favell, brokered the deal on Sunday night and stated the company can continue to trade as normal, protecting jobs and customer orders.
But the deal will not save MFI’s store on Drake Street after a staff member revealed to Rochdale Online that their store is still due to close.
The MFI sale follows several days of discussions between the management team and MFI’s owner Merchant Equity Partners (MEP).
Mr Favell said on Sunday night: “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.”
“MFI is a fantastic business, and with the large amounts of capital injected over the last two years, we have worked hard to improve service levels and the retail experience for our customers.
“We have many plans to further improve the business — including discussions with a number of major UK retailers to increase the number and quality of concession partnerships within our stores.”
MFI was founded in 1964 and started out as a mail order business but just three years later opened its first shop, in Balham, south London.
Over the next 30 years it became the biggest furniture retailer in the UK. But its position as market leader was stunted by the growth of stores such as Ikea, B&Q and Homebase, causing sales to fall from £854 million in 2003 to £742 million in 2005.
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