MFI refund vow after firm collapses

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When the company collapsed into administration late last month, Menzies Corporate Restructuring (MCR) hoped to sell on the outstanding orders.

But it has now admitted defeat and said full refunds would be available thanks to a £30 million contingency fund.

All MFI's stores were closed last weekend, with about 1,350 MFI staff made redundant.

MFI collapsed after being hit by falling demand for "big ticket" goods in a slumping housing market.

About 30,000 customers have been left with outstanding orders and between 40% and 50% - up to 15,000 - paid by debit card, cash or cheque, which had left many nervous that they would have to compete with other creditors for refunds.

Customers who ordered custom-made Kuchen Lab kitchens will be the only ones to receive the orders because they are individually designed to the buyer's requirements.

A statement on the MFI website gave instructions on how customers could get their money back.

People who paid by credit card or Visa debit card and have not received a delivery or have received some, but not all, of their order should contact their card company for a refund for the undelivered goods.

MCR said it would speak to credit card companies to ensure the refunds were confirmed and completed as quickly as possible.