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| MFI management make buy-out deal | MFI management make buy-out deal |
| (20 minutes later) | |
| Furniture retailer MFI will continue to trade after a management buy-out saved the firm from further troubles. | |
| Chief executive Gary Favell said on Sunday that a deal to save the company will be completed within 24 hours. | |
| It comes after several days of talks between management and MFI's owner Merchant Equity Partners. | It comes after several days of talks between management and MFI's owner Merchant Equity Partners. |
| MFI, bought by MEP for £1 in 2006, is facing increased competition and has seen sales decline. Its quarterly rent bill is also due on Monday. | MFI, bought by MEP for £1 in 2006, is facing increased competition and has seen sales decline. Its quarterly rent bill is also due on Monday. |
| MFI said the deal would protect its employees' jobs and customer orders. | |
| In a statement MFI said the buy-out will be funded through "a substantial cash dowry payment from MEP which will secure deposits paid by customers." | |
| Fundamentally, it is business as usual for MFI, its employees and customers. Gary Favell MFI chief executive | |
| But it added that MEP would not remain a shareholder following the transaction. | |
| MFI, with headquarters in north London, has around 2,500 staff and 192 stores. | |
| Mr Favell said: "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." | |
| He said there had been "large amounts of capital injected over the last two years" and added that the business had some of the "strongest brands in the UK furniture market". | |
| "Fundamentally, it is business as usual for MFI, its employees and customers. In fact, sales in recent weeks have been ahead of plan," Mr Favell said. | |
| Over 30 years MFI grew to become the biggest furniture retailer in the UK with a value of £1 billion. | |
| However, by 2005 sales had fallen to £742 million as competitors such as Ikea, B&Q and Homebase challenged its market position. |