Christmas cheer for kitchen firm as it reduces rental liability on former MFI stores

24th December | rent | The parent company of trade kitchen supplier Howden Joinery has reduced its financial exposure to rental obligations that kicked in following the collapse of furniture retailer MFI.

Galiform has agreed a deal with the landlords of six of the 46 stores for which it acts as guarantor for rent and associated costs. It has paid £5.8m to free itself of its obligations on the six stores, and hopes other mitigating deals on remaining stores will be struck in the months ahead.

Following the agreement, Galiform’s annual liability stands at £17.6m for the remaining 40 stores, although this reduces each year as store leases expire.

Matthew Ingle, chief executive, said, ‘The approach we have adopted with landlords since the guaranteed property liabilities crystalised has enabled us to achieve offers that make sense for our shareholders. Whilst we are pleased with progress to date, we hope others will follow soon.’