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Last Updated: Tuesday, 17 October 2006, 13:37 GMT 14:37 UK
MFI warns recovery will take time
MFI sign
MFI employs 4,200 people
The new boss of MFI has warned it will take "several years" to turn around the loss-making furniture business.

Gary Favell said MFI had to bring in better products, and said cost cuts would be necessary - although he said it was too early to talk of job cuts.

The 50-year-old takes up the top job at the 200-store UK chain following its sale to private equity group Merchant Equity Partners for 1.

MFI's former - eponymous - parent firm has now renamed itself Galiform.

Galiform will continue to run the Howden Joinery business.

'First choice aim'

Under the terms of MFI's sale, Galiform has agreed to continue to invest 75m in the company by April 2008.

The products at MFI did not move with the time - they lost their way
MFI boss Gary Favell

Galiform will also continue to supply MFI for up to two years.

Merchant Equity Partners has pledged to invest 102m in MFI.

"We have to make sure that MFI is the first choice for bedrooms, bathrooms and kitchens," said Mr Favell.

"The products at MFI did not move with the time - they lost their way."

Mr Favell previously turned around the fortunes of rival chain Magnet.

MFI now employs 4,200 people.


SEE ALSO
MFI sells store chain in 1 deal
22 Sep 06 |  Business
MFI close to sale of retail arm
18 Sep 06 |  Business
MFI in talks over retail arm sale
17 Aug 06 |  Business
MFI shares plunge after 45m loss
20 Jul 06 |  Business
MFI 'has offers for its business'
19 May 06 |  Business
MFI revamp threatens 1,500 jobs
28 Feb 06 |  Business

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