MFI saved by bosses’ buy-out

A management buy–out will be completed today which will safeguard the future of furniture giant MFI, the firm’s chief executive said.

Gary Favell said the deal, agreed last night, means the firm can continue to trade as normal, protecting jobs and customer orders.

MFI, which has a store in Manchester Road, Oldham, has around 2,500 staff and 192 stores nationwide.

Oldham staff maintained a tight-lipped silence over their future and one said: “We are still here at the moment.”

But when questioned about their jobs, he said: “We cannot say anything at all.”

The MFI sale follows several days of discussions between the management team and MFI’s owner Merchant Equity Partners (MEP).

“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,” Mr Favell said last night.

“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.

“Fundamentally, it is business as usual for MFI, its employees and customers. In fact, sales in recent weeks have been ahead of plan.”

The buy–out will be funded through “a substantial cash dowry payment from MEP which will secure deposits paid by customers”.