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Store’s future under threat

by Alice McKeegan and Helen Johnson
3/10/2008

UNCERTAINTY surrounds the future of the Rochdale branch of a national furniture giant.

The MFI store, on the retail park off Drake Street, could be one of up to 100 branches facing the axe, despite the firm being rescued by a management buy-out last weekend.

The company, which employs around 2,500 staff across the country, has recently struggled in the wake of a consumer slowdown and a fall in demand for retail goods.

This week, a report in a national newspaper claimed that only 92 stores out of 194 would be kept open by the management team.

However, a spokeswoman for the chain refused to say if its Rochdale outlet has been earmarked for closure and said that no decisions had been made.

Chief executive Gary Favell led the buy-out of the firm from owner Merchant Equity Partners, which bought MFI for £1 two years ago.

He said that the deal would mean ‘business as usual’ and promised that employees’ jobs and customer orders would be protected.

Over 30 years, MFI grew to become the biggest furniture retailer in the UK with a value of £1 billion.

However, by 2005 sales had fallen to £742 million as competitors, such as Ikea, B&Q and Homebase, challenged its market position.

Rochdale MP Paul Rowen called for clarification from the company on the future of the store.

He said: "I want to protect jobs and would like to discuss the store’s position in our town. It is my understanding that no formal decision has been made.

"I will be making the case to retain the store to their new bosses. I have received assurances that anyone who is waiting for goods will receive them as planned."

A spokeswoman for MFI said: "It is business as usual for MFI, its employees and customers.

"Negotiations with landlords are ongoing to maximise the number of stores to be transferred to the management buy-out. This is work in progress."

l THE firm which owns the Central Retail Park land has confirmed a planned multi-million pound overhaul of the site is still on course to start soon.

Leeds-based Town Centre Securities was granted planning permission in 2006 to build a 75,000 sq ft building at the northern end of the site parallel to Drake Street to house eight non-retail units and demolish the existing Halfords, MFI and Focus units.

A spokesman for Town Centre Securities confirmed that the development was still going ahead and the firm was in the process of making a few final decisions about which retailers would be included on the site. He added that work is expected to start within the next few months.

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