MFI offloads three businesses

Furniture retailer MFI scaled back its operations today as it continued to suffer at the hands of a cautious consumer.

MFI revealed it is quitting three businesses that are expected to make a combined loss of £10m (€14.7m) this year – as part of a strategic review, which is also examining its UK retail chain.

It came as MFI indicated that sales at its retail outlets were still falling, but at only half the speed of when it last updated the market in October.

Orders in the eight weeks to November 26 at its UK retail arm were 15% lower than last year – compared with a 31% drop over the previous three weeks.

MFI said it was on track to meet market expectations for its annual results, but its Howden Joinery business was likely to deliver operating profits towards the lower end of the current consensus in the City.

As part of a strategic review started by new chief executive Matthew Ingle, MFI said it was exiting its Howden Millworks business in the United States, its retail joint venture in Taiwan and its Ethan Allen joint venture in the UK.