MFI chief quits as sales slump

The boss of MFI paid the price for a dramatic trading slump today after the furniture store chain announced another sharp deterioration in sales.

Chief executive John Hancock will leave the company with immediate effect and is to be replaced by Matthew Ingle, who is currently managing director of MFI's Howden Joinery business.

MFI said net orders were 31 per cent lower than a year earlier over the last month, with the company now expecting a small loss for its financial year.

The decline in sales for the core UK retail division compares with a fall of 15% seen in the previous 13 weeks.

With trading conditions unlikely to pick up soon, MFI said it had been in discussions with the group's lenders about future arrangements. However, it stressed that it had not breached any banking covenant.

Mr Ingle, who joined MFI in 1995 and has led the development of the Howden Joinery business, said he was "urgently reviewing" the strategy of the group, adding that he was determined to improve the performance.

He 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."

Mr Hancock became chief executive in March 1999, having served as a non-executive director for three months prior to that. He was previously an executive director of WH Smith and his career has also included senior posts with Associated British Foods and Ted Bates Advertising.