Woolworths and MFI in serious trouble
As 30,000 people stand to lose their jobs at Woolworths, MFI has also gone into administration.
This could be good news for shoppers as the companies slash prices to get rid of stock. But what about people who've already ordered furniture from one of the largest suppliers of kitchens and bedroom furniture in the UK?
Watchdog has investigated MFI many times over the years, and we'll be looking at the current situation on Monday's programme (1 December 2008). Nicky Campbell, Julia Bradbury and Paul Heiney are talking to people in MFI stores now to hear the concerns of customers, staff and managers - and find out what happens next.
MFI started business in 1964 as a mail-order operation, while Woolworths' first UK store opened in Liverpool in 1909.
Trouble at two of the UK's bigggest retail chains has sent shivers along the high street, with analysts predicting more companies could face collapse in the coming months. Competition from supermarkets offering lower prices is partly to blame, although a further factor is that retailers have borrowed more than £25 billion from banks and - like everyone else in this credit crunch era - they're finding it difficult to borrow any more.
What do you think about the problems at MFI and Woolworths?
We'll be following up on your comments on Watchdog this Monday.
You can read more in-depth analysis on BBC News:
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We purchased a kitchen from MFI in october, paying the balance amounting to a total of £11,700 in November after being assured numerous times by our local store that the were not going to close, but MFI was going to remain as a company (how wrong we were).
MFI took the money from our account on Tuesday and then went into administration on Wedneday,[Personal details removed by Moderator]
We therefore spoke to Comsumer Direct who told us to go to our local store and try and secure a refund, this we did only to be told they couldnt do it we had to contact MFI Headoffice, Cash and Banking in London who would arrange this. The number given was constantly engaged, but we got through only to be told MFI had written any refund cheques since the last two weeks of september, therefore she had a 9 week backlog and wasnt sure if she would be able to write any at all now.
We are now left with a empty room with no money to purchase another one. Looks like we wont be having Christmas Dinner at our house this year.
We are now left with not knowing when we will or if we will get our money back.
Surely if we have a refund receipt they cant keep our money, its not MFI's to keep!!!
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I sub-contract from mfi (or used to) they owe me thousands dated back to october. The treatment I have received has been terrible I have only found information out from the news and from the actual mfi website we were not notified of anything customers have been treated badly as well with some people not even being informed. [Personal details removed by Moderator] I hope the chief executive has a conscience because there are alot of people out there this xmas empty handed and out of pocket.
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Ordered some furniture in October, and was given a delivery date of 22nd November. Phoned the day before to confirm that we had the am delivery slot.
saturday delivery date came and went -no sign of furniture -what a day wasted. No answer from the number given on the invoice, but eventually looked up on internet and got through to customer services number -and got through, to be told 'sorry, the computers have a fault and could not print off the orders so no deliveries could be made -but we would be contacted ina couple of days so we could rearrange delivery. Phoned them Tuseday 9day before the company went into administration) to be told that the whole system had been down so no deliveries werre made in the UK and the drivers could not phone the customers to tell them as they did not have any printed info. Well how about someone from Customer services phoning then! Went into administration on weednesday and published stories in the media that said they had wriotten to all their customers and told them they could either have full refunds or goods delivered. I have heard nothing yet and frankly don't believe this - it's just for publicity. I have been completely unable to get through to the Customer services on the number given in the media. Have any others had the same experience and been told the same story? And how do i get my money back in full - as soon as possible?
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We have paid £7000 for a kitchen due to be delivered in a couple of weeks and no one is telling us anything; I rang the recommended phone line numerous times which cost money as there were lengthy menus etc and when we finally got through we were told that they could tell us nothing - why bother having the line then and wasting everyone's time??
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We purchased a kitchen using the buy now pay later option through Black Horse. Due to a mistake in the design of our new kitchen we returned a breakfast bar worth £919 on 09/10/2008. Since that time the MFI staff have said they cannot do anything until the new management agreement with Black Horse has been resolved. Black horse are stating that they cannot so anything and we must wait for MFi to refund, which is unlikely to happen now. Feels like we have been going around in circles for the last 2 1/2 months.
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I have managed to get through to customer services who call tell us absolutely nothing - they simply read out what is on the website - why lead us to believe that further information can be given by providing these numbers to ring. They told me that no refunds have been given yet to anyone, I feel absolutely sure that we will lose our £7000 and I bet anything that the landords owning sites will have precendent over the customers like us who have lost our money.
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While not wanting to throw good money after bad, I would be prepared to get my own van and get my own kitchen from the warehouse. It must be already built and sat there waiting. Its paid for so is this an option?
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We purchased a Stoves Range Cooker For £1.600 on the 29th oct 08.We was told our cookers was going to be deliverd on the 25th Nov 08 and did'nt come.we then rang them to find out the computers where down and we should give them 2 days for us to receive our cooker..the next day we hear MFI had gone Bust..and the Administrators are in.We paid by Debit card and we have rang every number we can find for our refund only to see this message everywhere online..debit card or cheque will be contacted shortly , to advise them as to the status of any possible refund..Where do we Stand
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we purchased £3,000 of bathroom furniture on interest free credit through mfi which has not been delivered, this type of payment has not been mentioned on there web site, where do i stand with the debt does it come under section 75 of the Consumer Credit Act 1974
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I feel really sorry for these customers. However every week I watch this programme and am astounded at how poorly equipped people are to deal with inconveniences. One lady had had a failed delivery of a dining table. Of course this meant she had to cancel her family coming over from another country as they couldnt eat....!Or, she could have bought a cheap plastic garden table for a tenner and put a table cloth over it.Another lady is 6 months pregnant and doesnt have a sink unit. Of course it is much easier for her to wash her crockery in the BATH than put a washing up bowl and a towel on the existing units..? Its worth straining your back for a minute on telly! Perhaps you might even get some compo! Watchdog, these people have genuine complaints but no common sense to deal with their situations, perhaps you should provide better guidance and not martyr people who make life difficult for themselves! Really funny viewing, Darwin would be proud..
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I found the staff at our newly re-opened MFI store really helpful and happily placed a big order (bedroom, bathroom, kitchen, etc) back in July. Luckily our order has now arrived, although we are still waiting for replacements for items that were delivered damaged.
My major complaint with MFI is their after sales "service". Even before thay went into administration it would take 10 minutes or more for someone to answer the phone, then most of the people I spoke to couldn't help me. I spent ages on hold and ended up bending over backwards to help them! I thought it was supposed to work the other way round! In my opinion this is a reason why stores go under. People expect a decent level of service - why shouldn't we?
All my letters and e-mails have gone un-answered.
At least I've got my order.
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I was an sevice agent for mfi extracare,and is owed thousands for work done, we still have customers phoning us daily asking when they getting appliance fixed, i feel sorry for people who will not be able to use there cooker etc this xmas...It would off been nice to be informed that we werent going to get paid,even asked us if could cover over xmas.the only way we found out they went was via mfi mep forum..so looks like we to will have nice xmas with no money and no way of getting it..
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Like all the people above we are also caught up in the MFI fiasco! We paid by debit card and now have no kitchen to speak of. What annoys me is the total lack of communication, how, when, what if? All it needs is a person to say they care and are doing their best for everyone. We feel very sorry for the people losing their jobs, so perhaps a christmas without a kitchen is nothing compared to their lose. Please just give us a little thought and be a bit more personable.
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we have purchsed a kitchen and paid over 4000 which is due for delivery this month on 9th. we have struggled to borrow money from family and friends to pay for this kitchen. my 15 year old son was sufffering bone cancer and we decided to extend the house as this was his wish too, unfortunately without seeing it built my son past away in august. we pulled our selves together and moved back from our parents house to finish the house and now we are left here waiting for a kitchen and worried sick as this was the last thing we need in our lives to happen to be in debt and worrying if this kitchen ever gonna arrive.
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What is anyone doing about MFI? They do not let you know what is going on and their help line number, when answered, does not give you any information other than to check their website which also doesn't let you know anything either! Someone out there must know something!
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I seriously doubt if you paid a deposit by cash/cheque (like I stupidly did) that you will see any of it back.
This is also the view of the Administrator. If you read para 8.16 of the Statement of Administrators Proposals (which is tucked away as a pdf download at the bottom of the MFI website) they state basically that they do not think they will be able to raise sufficient funds to repay non preferential creditors (ie customer deposits, fitters etc etc)
I would also doubt that they will be able to complete any partially completed orders. Many of the suppliers have apparently asserted Retention of Title over unpaid stock sitting in the warehouse, which apparently is £40m quids worth.
I dislike using credit cards but have been taught an expensive lesson.
The Administrators are doing a poor job of communicating with customers and I do not believe that is because of incompetence. They know what reaction they will get when they deliver the news and are just trying to delay that. Personally I think in such a public company collapse they should be doing a better job in dealing with the public. The DTI should be taking more interest in this process.
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How correct galactictext was back when this all started on Dec 9th.
the MFI Administrators have now said that sorry we have no money for any refunds for any customer, if you have paid using credit card then approach your card issuer for a refund.
Shame that the media has not picked up on this but I guess that was the plan and it seems to have worked. good luck to the 15-20,000 customers who have now lost thousands of pounds each. and none of the consumer groups seem to think it even is worth comment on :-(
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