MFI 'saved' in management buy out

29 September 2008

The company says the agreement has been reached following 'extensive discussions' between the management and owner Merchant Equity Partners (MEP) in recent days.

The team, led by current ceo Gary Favell, will complete the purchase in the next 24 hours.

The buy out will be funded through a 'substantial cash dowry' from MEP which will secure the existing customer deposits. However, following the transaction, MEP will no longer be a shareholder in the business.

Favell said the management buy out will secure the future of the business and safeguard employees within the store network. All customer orders will be completed and trading continues as normal, he said.

"I am delighted we have secured the future of the MFI business through this MBO 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" Favell said.

"MFI is a fantastic business, and with 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. In Hygena and Schreiber we have two of the strongest brands in the UK furniture market...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.

"Fundamentally, it is business as usual for MFI, its employees and customers. In fact, sales in recent weeks have been ahead of plan. MFI is a great retail brand and I look forward to leading the management team as we build further on our market leading position."

Speculation on the fate of MFI had been growing in recent weeks following rumours that it was on the market and looking for strategic partners - including a possible merger with rival Homeform.

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MFI 'saved' in management buy out	Back
29 September 2008 The company says the agreement has been reached following 'extensive discussions' between the management and owner Merchant Equity Partners (MEP) in recent days. The team, led by current ceo Gary Favell, will complete the purchase in the next 24 hours. The buy out will be funded through a 'substantial cash dowry' from MEP which will secure the existing customer deposits. However, following the transaction, MEP will no longer be a shareholder in the business. Favell said the management buy out will secure the future of the business and safeguard employees within the store network. All customer orders will be completed and trading continues as normal, he said. "I am delighted we have secured the future of the MFI business through this MBO 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" Favell said. "MFI is a fantastic business, and with 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. In Hygena and Schreiber we have two of the strongest brands in the UK furniture market...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. "Fundamentally, it is business as usual for MFI, its employees and customers. In fact, sales in recent weeks have been ahead of plan. MFI is a great retail brand and I look forward to leading the management team as we build further on our market leading position." Speculation on the fate of MFI had been growing in recent weeks following rumours that it was on the market and looking for strategic partners - including a possible merger with rival Homeform.