Favell says there is no quick fix
The new boss of struggling furniture retailer MFI has said that it will take 'several years' to turn around the ailing business, despite an investment of£227.7 million by April 2008.

As revealed by Retail Week (September 22) chief executive officer Gary Favell said they would 'upgrade many aspects of the business', including 'a greater focus on customer service - and introducing tighter controls on expenditure'.

The company added that the new owners would invest£102 million, in addition to£125.7 million from MFI's previous owners by April 2008.

Unveiling the new management team for the 200-store business, Favell said: 'The current MFI business is not sustainable without change - this is not a quick fix and to reach our objectives will take several years.'

He added that the new management team - which includes chairman David Hamid, who is also a partner at the private equity house bankrolling the deal, Merchant Equity Partners - had been responsible for 'various successful turnarounds', including kitchen retailer Magnet, which was formerly led by Favell.

The news of the new top-management of the business came a day after MFI shareholders backed the sale of the retail arm to Merchant Equity Partners for£1 after the company posted a£14 million loss in its interim report in June this year.