Troubled furniture manufacturer and retailer, MFI is putting 185,800 sq m (1.5m sq ft) of distribution space on the market.
This amounts to more than half of its distribution portfolio and follows plans to restructure its supply network following a 14% fall in annual pre-tax profits to £60.4m earlier this week.
According to a spokesman for MFI, the properties lined up for disposal include 185 branch warehouses and the hub of its supply network – the 65,030 sq m (700,000 sq ft) distribution warehouse at Brackmills, Northampton.
Chairman Derek Hunt said MFI would gradually close down all of its branch warehouses. Instead the retailer will use 12 central home delivery depots, like the recently acquired of a 5,950 sq m (64,000 sq ft) warehouse at Western Approach near Bristol.
MFI aims to dispose of the space by April next year but will put accommodation on the market as the home delivery depots come on-stream. The retailer already sub-letting retail units and assigning leases in certain towns but now plans to speed up the process.
The spokesman said: “We will be putting our branch warehouses on the market but servicing our retail outlets with 12 home delivery centres of up to 5,574 sq m (60,000 sq ft). Four of which are already open at Reading, Orpington, Potters Bar and Thurrock, Lakeside.” The other eight are under construction at Belfast, West Bromwich, Warrington, Gateshead, Glasgow, Leeds, Nottingham and at ICI’s development on Avonmouth.
At Northampton, J Sainsbury has already taken some 28,799 sq m (310,000 sq ft) on a sub-lease for its Homebase brand but MFI is considering both sub-letting the remaining space or assigning its lease.
Mason Owen & Partners advises MFI on property disposals.
EGi News 02/07/98
