A major shake-up at MFI could see the loss of around 1,500 jobs and a cut in UK manufacturing capacity of about 40%.
MFI chief executive Matthew Ingle described 2005 as “a difficult year” which saw a pre-tax loss of £110.8m against profits of £20.6m in 2004.
To cut costs, the company plans to shut two manufacturing operations in Scunthorpe and Stockton, close stores and delivery centres, sell its Sofa Workshop business and reduce the range of products it sells to focus on kitchens and bathrooms.
Cutting manufacturing capacity by almost a half, combined with about 1,100 job losses, is expected to produce annual savings of about £12m.
