150 jobs lost at MFI factory

Published on 28th June 2007 in News

One hundred and fifty jobs look set to go at the Howden Kitchens factory, also known as the former MFI factory, after Galiform PLC announced plans to restructure the supply part of their business.

A spokesperson for Galiform stressed that the job losses were proposed rather than concrete but said a 90-day consultation period, during which employees will be offered help and advice, has begun.

The changes have been proposed because the group want to focus on producing 'rigid' kitchen cabinets and worktops at its factories in Howden and Runcorn.

The manufacturing operations in Hull, which currently make kitchen components, will be relocated to Howden and the warehousing facilities will be located at the factory sites and the supply business' national distribution centre in Northhampton.

Around 560 jobs are set to go in all - as well as the 150 losses in Howden, there could be 200 in Hull, 45 in Runcorn and 170 in Northampton.

However, Galiform have said the growth of their Howden Joinery business means they expect to be able to take on 550 employees, and overall staff numbers will remain nearly the same.

Galiform was previously known as MFI Furniture Group PLC but changed its name last October after it sold the MFI retail chain to the private equity group, Merchant Equity Partners.

The announcements come as Galiform continue its process of finalising the supply and logistics arrangements between its supply arm and MFI.

The end date for the arrangements was recently brought forward to December 21 of this year and after this date, the number of products being manufactured and sourced by the supply arm will be significantly reduced.

"The ending of these arrangements enables Galiform to undertake the next stage of restructuring the business, decreasing the scale and complexity of Supply's manufacturing alignment of the business with Howden Joinery and is a further step in the transformation of Galiform," a spokesperson said.