MFI remains open for business following an emergency management buyout.

Beleaguered UK furniture retailer MFI has escaped administration, following a last-minute management buyout deal agreed yesterday (28 September).

The transaction, led by MFI Chief Executive Gary Favell, is expected to be completed by tomorrow, protecting jobs and customer orders.

Under the deal, current owners Merchant Equity Partners (MEP) will provide MFI with “a substantial cash dowry”. The company paid £1 for MFI in 2006 – it will not remain a shareholder.

The agreement follows several days of discussions held between the management and MEP. It had originally been feared MFI would go into bankruptcy as MEP had already lined up Kroll to act as its administrators.

Favell said in a statement: “I am delighted that we have secured the future of the MFI business through this management buyout 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.

“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.”

MFI has its headquarters in north London and operates 192 stores nationwide, employing around 2,500 staff.

For more information, visit www.mfi.co.uk

By Natasha Piscitelli