MFI Group
From Wikipedia, the free encyclopedia
 |
|
| Fate | Administration |
|---|---|
| Founded | 1964 |
| Defunct | 2008 |
| Headquarters | London, England, UK |
| Industry | Retail |
| Products | Kitchens Bedrooms Bathrooms Sofas Living room furniture |
MFI Group Limited, usually referred to simply as MFI, was a national British furniture retailer. It was one of the largest suppliers of kitchens and bedroom furniture in the UK, and operated mainly in retail parks in out-of-town locations. After success in its early decades it more recently experienced recurring financial problems accompanied by several changes of ownership, and on 26 November 2008 it was announced that the company had been placed into administration.[1] Merchant Equity Partners, headed by Henry Jackson, was the last company to own it, before it was sold to the management in September 2008 for a "small profit."[2] The company ceased trading by 19 December 2008 after the administrators failed to find a buyer.[3]
Contents |
[edit] History
[edit] Early history and development
The company was founded in London in 1964 by Noel Lister and Donald Searle and was called Mullard Furniture Industries. Mullard was Searle's wife's maiden name.[4] For a short time in the 1980s MFI and Allied Carpets were part of the ASDA-MFI Group plc. MFI was an early player in the flat-pack furniture market, a low-end competitor to IKEA, earning the satirical backronym "Made For Idiots".
Between 2000 and 2005 MFI also maintained a presence within Currys superstores, via rented floorspace, and was known as Hygena at Currys. However, this concession was dissolved by mutual agreement in late 2005. In September 2006, MFI's manufacturing arm was renamed Galiform plc. The loss-making retail arm was then sold to Merchant Equity Partners for £1, whilst retaining Howden Joinery builders merchants.[5] The deal was lead by Henry Jackson. During MEP's ownership, MFI was returned to breakeven profitability as it improved the value of its products by importing new, more contemporary products from Europe and Asia, invested heavily in a new 750,000 sq. ft. distribution centre, successfully implemented SAP computer systems and sold its remaining freeholds and long leaseholds to finance some of the turnaround. But the onset of recession hit MFI hard, and the company returned to losses. In September 2008 the retail business was the subject of a management buy out.[6]
[edit] Administration
Early on 25 November 2008, the BBC first reported the possibility of MFI going into administration, with MFI desiring a three-month rent-free period from landlords. Later the following day it was announced that no agreement could be reached and PropertyWeek reported that Menzies Corporate Restructuring had been appointed as administrators.[7] On the 26 November 2008, after a board meeting MFI went into administration.[8] The Company was unable to confirm what would happen to consumers with pending orders. On Friday 19 December all MFI stores were closed with the loss of 1,400 jobs because no buyer was found.[3]
[edit] Operations
MFI had over 100 stores across the UK of between 15,000 & 30,000 square feet. Home deliveries amounted for over 50 million items a year going to 2.5 million households in the UK & Northern Ireland.
The Company had sought to upgrade many aspects of the business, including greater focus on customer service; updating and improving the product range; improving utilisation of floor space; establishing closer supplier relationships; investing in logistics, IT, supply systems and product development and enhancing internal communications.
It offered a full range of furniture for bedrooms, bathroooms, kitchens, lounges, dining rooms and home offices. It was particularly associated with self-assembly furniture.
Its products were mainly targeted to value-oriented customers with the "Hygena" brand, and those on a higher income with the "Schreiber" brand. MFI was also one of the largest suppliers of installed appliances in the UK with its own brand "Diplomat". New and exclusive to MFI was its "Space Genie" range which were ingenious storage solutions for the kitchen and bedroom. MFI sold beds directly from Silentnight, Rest Assured and Layezee, and also sold dining furniture from The Chair Company. Other MFI brands included "Viva Sofa" and "The Bath Co."
[edit] Criticisms
MFI had been criticised for the excessive frequency and length of its sales. In a six month survey by consumer magazine Which? it emerged that 4 out of 5 kitchens in the "sale" had never actually been sold at the higher price against which the discount claims were being made. Which? stated that "MFI's pricing policy deceived its customers into thinking they are getting a better deal than they are. In some cases, its pricing is downright misleading". MFI's advertising of such sales also came in for criticism for using phrases such as "Hurry! Only four days left" or "Prices too good to last" even though a new sale would almost always be launched immediately afterwards.[9]
MFI was also known for being one of the first ever companies to be investigated by the BBC programme "Watchdog". The programme attempted to buy a £600 kitchen advertised by MFI, though the price only actually included kitchen units and not the appliances shown.[10]
[edit] Controversies
In September 2007 MFI was forced to withdraw a television advert featuring a woman slapping her husband in the face twice and shouting at him for leaving the toilet seat up. Those complaining felt that the advert trivialised the issue of domestic violence against men. The ASA concluded that it "was likely to cause serious or widespread offence to viewers and could be seen to condone intimidation, domestic violence and aggression as an acceptable way to resolve issues". The ASA went as far as to state that "it could also cause social, moral or psychological harm to children" and they were "concerned that it had been broadcast at all". As a result the advertisement was banned.[11]
[edit] See also
[edit] References
- ^ "MFI set to go into administration". BBC Online (BBC). 17:24 GMT, Wednesday, 26 November 2008. http://news.bbc.co.uk/1/hi/business/7750250.stm. Retrieved on 2008-11-26.
- ^ Official MEP website and news
- ^ a b "Furniture chain MFI closes down". BBC Online (BBC). 17:05 GMT, Friday, 19 December 2008. http://news.bbc.co.uk/1/hi/business/7792498.stm. Retrieved on 2008-12-19.
- ^ "MFI sold for £1 and repackaged as Galiform". The Guardian. September 23 2006. http://www.guardian.co.uk/business/2006/sep/23/privateequity.
- ^ BBC NEWS | Business | MFI sells store chain in £1 deal
- ^ MFI directors in management buyout talks
- ^ MFI has gone into administration
- ^ Furniture giant MFI collapses into administration
- ^ MFI accused over all-year 'sales' | This is Money
- ^ Watchdog continued to cover MFI and called it "so familiar it feels like an old friend" 1st December 2008BBC - Press Office - Watchdog 25th anniversary
- ^ ASA adjudications: MFI Retail Ltd
[edit] External links
 |
Wikinews has related news: UK retailers MFI and Woolworths collapse |
