Howden boss Ingle replaces Hancock as chief of MFI |
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Published
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Mon, 03 Oct 2005 11:15
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LONDON: Ailing furniture retailer MFI today said it was replacing chief executive John Hancock with Mathew Ingle, the managing director of its kitchen wholesale wing Howden. The furniture firm had been hit hard by the slowdown in consumer spending and a slump in the housing market and expected to post a small annual loss.
Hancock’s exit wasn’t exactly graceful because in his charge the firm had seen a sharp downturn; and he could do little to reverse the trend despite a string of profit warnings. He had very nearly lost his job last autumn when the firm invested £50 million in a new supply chain.
MFI said declining sales had troughed making the firm expect its third annual loss in four years. Net retail orders had dropped 31 percent against a year ago; and orders had fallen by as much as 15 percent since the start of the second half of the financial year.
The firm expects new chief Ingle to review the group’s strategy and repeat his performance at Howden Joinery unit. He is credited with the impressive growth of Howden’s business in just five years. Howden’s operating profits ascended from £9 million in 1999 to £100 million in 2004. He joined the firm in 1995 as managing director.
Ingle hopes “to maintain the strong momentum of Howden and improve the performance of the UK retail arm”.
The furniture retailer’s stock value has dropped 30 percent in the last 7 months as business took a downturn following a series of interest rate hikes which made consumers tighten their belts.
The firm also rubbished recent reports that said it had breached its banking covenants.
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