More than 130 MFI call centre workers who lost their jobs last month are unlikely to be paid any redundancy money, according to The Times.

The workers, based in Sunderland, have been told that as the retailer is now in administration they need to apply for compensation from the Government.

Last week MFI placed its retail and property divisions into administration after the completion of a management buyout, led by chief executive Gary Favell.

The MBO saved 1,350 jobs and 106 out of the 187 stores, which will operate under the new company, MFI Group.

The remaining 81 stores, head office and distribution centre are continuing to trade in administration while the administrators consider a range of options.

All existing customer deposits from all stores will be protected and orders fulfilled.