Gloom as MFI failure threatens jobs at more firms

11th December | jobs | The collapse of MFI is starting to take its toll on the firm's supply chain as two firms admit they may have to make staff redundant. Egger, an Austrian chipboard, laminate and MDF supplier, looks set to lay off 18 staff at its plant in Northumberland, while workers at MFI's distribution centre at Thorne in Yorkshire face an uncertain few weeks.

The 750,000sq ft  distribution facility, which employs 350 staff, opened to much fanfare in December of last year. The facility cost £120m to build and kit out, with MFI agreeing a ten year deal with the site owners worth £3m a year. The site has been run for MFI by logistics firm DHL, which has admitted that jobs are at risk.

Egger, meanwhile, says the timber and wood panel trade as a whole is suffering from falling demand. Meristem, a major supplier of flat pack furniture to Argos, slipped into administration last month and remains in a state of flux despite what the administrator described as 'expressions of interest.'