MFI call in administrators
It has been revealed that UK giant MFI has today called in administrators due to weak demand, serious cash flow issues and a reduction in the credit lines available to the business. While the fact that one of the largest furniture retailers in the UK is struggling with trade is no surprise, the main issue is the fact that business was sold only a few weeks ago for one pound with many believing the business had been saved.
More than 1000 jobs are now at risk and while the administrators will attempt to sell the business as a going concern there are real concerns that the business will fail altogether. Staff wages have been paid up to date but the main issues seem to have been with supplies and weak demand from the general consumer. This is a reflection of both the UK retail sector and the housing market where investment activity has been frozen for some time.
On the upside, for those who have acquired goods through MFI there will either be a total refund or they will receive the products they acquired. Many believe that the MFI situation is just the tip of the iceberg with more bad news just around the corner.
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