Nov 26 2008
High Street Names Hit by Recession
UK furniture retailer MFI has gone into administration - blaming falling demand for big ticket items, cash-flow problems and the withdrawal of credit.
MFI’s adminitsrators claim to have two expressions of interest from potential buyers, although it is likely that most of the stores will be closed.
MFI has seen sales fall in recent years as it has faced increased competition from businesses such as Ikea and the economic downturn has made trading even harder, as people stopped buying things such as new bathrooms and kitchens.
An even more established name is also on the verge of administration as High Street legend Woolworths has buckled under its debt.
Woolies has been in a desperate position for some time, with loss of market share and poor forward planning over the last few years and the downturn has shown up the stores weakness.
Shares were suspended on the stock exchange today as the firm continued talks aimed at rescuing the business.
As one of Britains oldest store groups, this is a sign that no company is safe in the current climate
