Unrelenting decline in sales at furniture dealer MFI probably left its head with no other choice than to call it quits, as chief executive at MFI, John Hancock is leaving the firm right away and making place for Matthew Ingle, the managing director of MFI’s Howden joinery division, to take over.
MFI revealed that its net retail orders in the previous month had dropped 31% as compared to last year and if the present scenario continued, the firm would definitely be posting an annual loss, albeit a small one, in its financial year.
Struck with the ongoing retail downturn along with the slump in the housing market, MFI has been recording a precipitous fall in its sales in the year and predicted poor and ‘gloomy’ prospects for October. It had disclosed in the previous month’s trading update that its orders in British stores had fallen 15% in the last six months of its financial year.
Nevertheless, things seemed to be getting worse as MFI again stated in its latest update that sales had decreased even lower in the “volatile market place” as its total as well as same-store retail sales in the country slipped 31% lower. Yet, the retailer’s Howden joinery division and Hygena Cuisines French retail business were faring well, according to MFI.
Hancock, who is now stepping down, presided as chief executive at MFI in March 1999 after being a non-executive director at the firm for a period of three months. Before that, Hancock served as an executive director at WH Smith, besides having held senior positions at Associated British Foods and Ted Bates Advertising.
Meanwhile, succeeding chief executive of MFI, Matthew Ingle spoke about his new job and said, “This is fundamentally a good business. My immediate concern is to maintain the strong momentum of Howden and improve the performance of UK Retail. I am urgently reviewing the strategy of the group and I am determined to improve performance.”
MFI, furthermore, clarified that though it was talking to lenders about various financial arrangements considering its weakening “trading conditions”, it was not violating any bank or lender’s agreement.
Posted
on : Mon, 03 Oct 2005 13:30 GMT | Business News
By : Chris Rowe
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