Staff fears as MFI goes in to administration
Last updated 12:48, Wednesday, 08 October 2008
Carlisle's MFI furniture store is still trading for the moment, but staff are facing uncertain futures.
The company has denied that it had closed the branch this morning.
MFI is expected to close 90 outlets across the country this week after the credit crunch forced it into administration.
MFI chief executive Gary Favell bought 106 of the company’s 190 shops in a managment buy-out at the weekend.
As part of the deal, landlords of MFI stores had been asked to take a three month rent holiday to allow the businesses to keep trading into next year.
Administrator Kroll is continuing to negotiate with landlords of stores not included in yesterday’s rescue deal and some may still be saved.
MFI has become a victim of the credit crunch and the subsequent collapse in consumer spending.
Sales of ‘big ticket’ items like kitchens and furniture have slumped as consumers lose confidence in the economy and rein in spending.
