MFI customers with outstanding orders will get their money back after all stores were closed down on Friday.

All 111 stores have now shut and 1,400 employees have lost their jobs after administrator MCR failed to find a buyer for the business or for the customer order book.

All MFI staff have been paid to date and the administrator will also pay staff their holiday pay entitlement. Staff will be able to claim statutory redundancy from the Government.

MCR said customers should be able to get their money back as almost£30 million has been held by MFI’s merchant services provider (which processes all of the company's credit and debit card transactions).

MCR said this amount is “roughly equivalent to the total amount of customer monies held by MFI Group Limited in respect of outstanding orders as at the date of administration”.

MCR also said that TV ads that were aired on ITV on December 11 were done so “without the consent of the administrator and against the administrator's explicit requests to have the advertisements withdrawn”.

It said an agreement to air the ads was arranged prior to the appointment of the administrator and that no payments for the advertisements were made by the administrator.

Phil Duffy of MCR commented: “We regret that all MFI stores have closed. It was not possible to give prospective bidders certainty of occupation at any of the stores which meant offers for the whole business were not received.”