560 jobs to go at furniture firm

The group, which sold the MFI retail chain last October to private equity for £1, said the job cuts were expected under plans to "streamline" its furniture supply operations.

But Galiform added it would create 550 jobs at its Howden Joinery business, meaning overall employee numbers were likely to be steady over the year ahead.

The bulk of the supply job losses are set to go in Galiform's 200-strong kitchen unit manufacturing operation in Hull, which will be closed.

The group said there is the possibility some jobs from Hull may be relocated to its Howden site, with staff currently being consulted on the changes.

Galiform is also trimming its operations across sites in Howden, Runcorn and Northampton, which will see job cuts of about 150, 45 and 170 respectively.

The firm, previously known as MFI Furniture Group until the sale last year, said its supply business, which currently employs 1,900 staff, will now focus on making "rigid" kitchen cabinets and worktops in Runcorn and Howden.

Previously the business manufactured and externally sourced products for its Howden Joinery business and for third parties, such as MFI Retail Limited. In February, Galiform launched the first part of supply revamp, outsourcing the supply of kitchen fascias and appliances to concentrate on flat-pack and rigid kitchen cabinets.

The latest announcement marks the second stage planned changes for the supply arm. The firm's restructuring is set to cost around £35 million, with the majority earmarked for redundancy pay and support.

Galiform also announced it will stop providing supply and logistics for MFI under a transitional agreement from the end of the year.