Furniture retailer MFI could be forced into administration unless the firm's store landlords agree to a rent-free period, the GMB trade union has warned.
Furniture retailer MFI could be forced into administration unless the firm's store landlords agree to a rent-free period, the GMB trade union has warned.
The comments from the GMB come amid growing press reports that MFI is already looking at a possible move into administration due to financial woes.
The comments from the GMB come amid growing press reports that MFI is considering a move into administration because of financial problems.
MFI, which saw a management buy-out in September, was unavailable for comment.
MFI, subject of a management buy-out in September, was unavailable for comment.
The company currently has 110 stores across the country and a workforce of more than 1,000 people.
The company currently has 110 stores across the country and a workforce of more than 1,000 people.
'Irresponsible'
'Irresponsible'
"GMB members are asking former owner Galiform and other landlords of the 100 stores across the UK to be patient and agree to the rent-free period asked for by the management who bought the firm at the end of September," said Gary Smith, GMB National Secretary.
"GMB members are asking former owner Galiform and other landlords of the 100 stores across the UK to be patient and agree to the rent-free period asked for by the management who bought the firm at the end of September," said Gary Smith, GMB National Secretary.
MFI FACTS Founded in 1964 as Mullard Furniture IndustriesMullard was the maiden name of the wife of one of the co-foundersStores sold for just £1 in 2006 to private equity firm Merchant Equity PartnersManagement buyout in September takes on 110 storesEmploys more than 1,000 people
"The forthcoming cut in VAT may see an upsurge in business and it would be irresponsible of the landlords to put 1,000 people out of work by pushing the company into administration."
"The forthcoming cut in VAT may see an upsurge in business and it would be irresponsible of the landlords to put 1,000 people out of work by pushing the company into administration."
Led by chief executive Gary Favell, September's buy-out took on 110 MFI stores, while 81 loss-making outlets were placed in administration.
Led by chief executive Gary Favell, September's buy-out took on 110 MFI stores, while 81 loss-making outlets were placed in administration.
MFI has seen sales fall in recent years as it has faced increased competition from newer rivals such as Ikea.
MFI has seen sales fall in recent years as it has faced increased competition from newer rivals such as Ikea.
The management buy-out bought MFI from previous owner, private equity group Merchant Equity Partners (MEP).
The management buy-out bought MFI from previous owner, private equity group Merchant Equity Partners (MEP).
MEP bought the retail business for £1 in 2006 from the former MFI company, which renamed itself Galiform and maintained ownership of the manufacturing arm.
MEP bought the retail business for £1 in 2006 from the former MFI company, which renamed itself Galiform and maintained ownership of the manufacturing arm.
Have you been affected by issues covered in this story? Do you work for MFI? Are you a shareholder? Send us your comments using the form below.
Have you been affected by issues covered in this story? Do you work for MFI? Are you a shareholder? Send us your comments using the form below.
