Galiform and MFI at odds as furniture giant collapses again

27th November | retail | MFI has blamed former parent Galiform for the closure of 26 stores as the failed retail chain called in accountants on Wednesday. The company, only last month the subject of a management buyout which resulted in a halving of the firm's store portfolio, now seems destined for collapse, with more than a thousand jobs at risk.

Galiform was guarantor for the rent of the 26 stores to close, but denies forcing MFI's hand. In a statement Galiform said it was 'saddened' by events at MFI. The retailer  has struggled with landlords for weeks in attempts to gain a rent holiday that would have allowed the firm to regain its footing following the management buyout.

A statement from MFI said, 'The administration follows the continuing pressure on the home market which has accelerated in recent weeks with sales levels falling further behind prior year levels. The company has suffered from severe cash flow pressure as a result of credit insurance being withdrawn across the sector and the general market deterioration, which has led to the failure of certain key suppliers.'

Philip Duffy, Geoff Bouchier and Paul Clark of MCR have been appointed joint administrators of MFI.