page_title: MFI Group
section_title: History
hierarchical_section_title: MFI Group / History
caption_attribution_description: English: MFI retail store displaying older (late 80s / early 90s??) branding in the Mercia Business Park.
context_page_description: MFI Group Limited was a British furniture retailer, operating under the MFI brand. The company was one of the largest suppliers of kitchens and bedroom furniture in the United Kingdom, and operated mainly in retail parks in out of town locations. Anecdotally, it was said at one stage that one in three Sunday lunches in the United Kingdom were cooked in a kitchen from MFI, and 60% of British children were conceived in a bedroom from MFI.
  After success in its early decades, it experienced recurring financial problems accompanied by several changes of ownership, and on 26 November 2008, it was announced that the business had been placed into administration. 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".
  The business ceased trading by 19 December 2008, after the administrators failed to find a buyer.
  It struggled to make profits during the 2000s, as chains such as B&Q and Argos introduced their own furniture lines, and rival chain IKEA expanded.
context_section_description: The MFI Retail business was founded in 1964 as Mullard Furniture Industries by two British men, Noel Lister and Donald Searle, who previously traded in war surplus goods. It was named after Searle's wife's maiden name. The company became a public company in 1971, as MFI Warehouses (the Group). An external manager, Derek Hunt, was recruited soon afterwards.
  In 1982, owners of Hygena, Norcros, were looking to dissolve the company and sell the Hygena name. This was purchased jointly in 1982 by MFI Group and Malcolm Healey's company; Humber Kitchens.
  In the 1980s, the group entered into partnerships, notably in 1985 with Asda. The Asda connection was soon dissolved over concerns about the company's future, and there was a management buy-out in October 1987. Also in MFI took full control of Hygena in 1987, buying Healey out for £200 million. In November 1988, MFI acquired Schreiber Furniture.
  With the advent of out of town shopping during the 1980s, MFI Retail opened a host of stores in such developments. In 1985, it was the very first tenant of the Merry Hill Shopping Centre at Brierley Hill in the West Midlands, opening a new store, which within four years, was part of the largest shopping complex in Western Europe.
  MFI Retail gained a new rival in October 1987, when Swedish furniture retailer IKEA began trading in Britain, and expanded over the coming years. Soon afterwards, DIY retail giant B&Q expanded into the furniture market, and emerged as a surprise new rival for the business. Despite this, the MFI Group was still expanding in November 2002, when it took over Sofa Workshop.
  During 2004 to 2005, serious and highly publicised IT problems affecting customers damaged MFI Retail's credibility, and the finance director and chief operating officer left the Group.
  By 2005, it was clear that MFI Retail's fortunes were declining. Despite the British economy still being strong and recession not even on the horizon, it was reported that sales for 2005 had fallen to £742 million compared to £854 million in 2003. In September 2006, the MFI Retail business was acquired by Merchant Equity Partners for £1 after which the parent company changed its name to Galiform.
  In December 2006, Argos overtook MFI as the United Kingdom's largest furniture retailer. MFI Retail was the subject of a second management buyout in September 2008, but by this stage the British economy was sliding into recession, unemployment was rising and retail sales were falling. MFI's future was looking bleak.
  Early on 25 November 2008, the BBC first reported the possibility of MFI Retail 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.
  On 26 November 2008, after a board meeting MFI went into administration. The company was unable to confirm what would happen to consumers with pending orders. On 19 December 2008, all 111 MFI stores were closed with the loss of 1,200 jobs.
caption: An older MFI store in Durham with another version of the branding
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