MFI plans store administration to avoid rent bill
Furniture retailer looking for three-month grace period from store landlords to aid company rescue
MFI is planning to put its stores into administration in an attempt to force
its landlords to give the troubled chain some breathing space.
The furniture retailer was subject to a management buy-out earlier this week
and is now preparing to place 192 outlets into administration in order to agree
a three-month rental waiver from landlords.
Only those stores where a rent-free period can be agreed will then come back
out of administration, reported the Guardian.
Quarterly rent for the stores is due this coming Monday (6 October), at a
cost of £19m. Chief executive Gary Favell is reported to have told landlords
that the rent waiver is the only ‘viable option’.