A joint MFI and Dixons venture to sell kitchens from Currys stores is being halted because sales growth has not been strong enough.
Dixons, which owns MFI and Currys, said all 130 concessions would be closed between July and September.
It follows a comprehensive review of the business and will lose MFI around £5m in exit costs and wipe an additional £3m from operating profits.
MFI chief executive John Hancock said: “Hygena at Currys has been a worthwhile experience for both sides but we cannot justify continuing the partnership.”
The venture was set up in the autumn of 2000 and it is thought the profits were not sufficiently high to be split between MFI and Dixons.
Its demise is the latest blow to MFI, which blamed teething problems with a new supply chain management system for a sharp fall in profits in 2004.
In March, it told investors that bargain hunting by shoppers in the January sales was likely to swallow up any money saved through improvements to the supply chain.
Mr Hancock said today: “MFI continues to be the largest supplier of kitchens in the UK and we remain focused on improving the performance of our core UK retail businesses.”
In addition to its UK retail arm, MFI has a significant presence in France and owns the Howden Joinery business.
References: EGi News 11/05/05
