The whole story with MFI and their administration, management buyout and parts collapsing is utterly bewildering and holds more twists than an old Hitchcock movie. After weeks of drawn out speculation and no-one really knowing where they are with MFI it would appear that in a letter emailed to agents this afternoon, that the situation has been clarified.
The CE of the newly formed through the recent management buy-out, Gary Favell, has written to agents asking them, in essence, to forget all the money that they are owed and to continue to work for the new MFI business.
The letter, sent to us by several repairers that are currently owed thousands of pounds each from the failed furniture retailer is reproduced in full below.
17th October 2008
Dear Agent
RE: Payments of Appliance Repairs.
Malcolm Knowles who manages our ExtraCare service operation has asked that I confirm to you that payments will be made to you in relation to repairs issued after the announcement that MFI had entered administration.
I can confirm that new service requests for appliance repairs issued to you from the 1st of October 2008 will be settled in full, subject to existing terms and conditions relating to validation criteria.
The management of MFI Retail Limited, led by myself, completed a management buyout of the business from our owners, Merchant Equity Partners. This management buyout marks an exciting new phase for the company, allowing us the opportunity to sustain our position in the UK fitted furniture market.
I can assure you that MFI remain committed in working together to make the new business a success. We hope that as in the past, you can continue to work in partnership with us.
I would like to express my sincere thanks for your ongoing support.
Yours sincerely
Gary Favell
Chief Executive
It strikes us as wholly unreasonable to ask small businesses to simply write off the debts owed to them which for some may cause considerable hardship or even the failure of some businesses and yet, in the same breath, ask the repairers to continue working for MFI under another guise.
So MFI effectively ditch the debt that they owe to these small businesses that cannot afford to lose it and yet expect to work in partnership with the businesses that they have just hung out to dry. And it seems totally reasonable to assume that any work carried out for MFI prior to the first of this month will not be paid for.
We suspect that MFI may have issues in relation to service as the repairers will not feel inclined to work for a re-formed company that owe them money.
What a damm cheek? – My sympathies lies with the small decent independent who grafts all hours in all weathers to keep a roof over his head. Does MFI not realize that by their actions, they may well as a company survive (they don”t deserve to for the cr@p they sell), but for the many independies who have been asked to do work, & who may be reliant on that cash to keep them financially afloat, no money could mean the end of their businesses. – NOT FAIR! & SHAME ON YOU MFI – YOU ROTTERS!