Sales were pounds 386 million from 136 stores

Sales were pounds 386 million from 136 stores.1987: The unhappy marriage led to a management buy-out which, at pounds 717.5 million, is still the biggest in UK corporate history Bought control of Hygena for a further pounds 200 million Asda retained 25 per cent of MFI. Derek Hunt (above), managing director since 1981, replaced Arthur Southon as chairman1985: Merger completed with Asda, with MFI valued at pounds 560 million. The company moved away from warehouse image and increased emphasis on fitted kitchens and bedrooms1980: By now there were 77 stores, 2,300 staff and sales of pounds 127 million. Acquisition of Status Discount (66 stores in the North) gave MFI national coverage1981: Year ended with 2.4 million square feet of selling space, 116 stores and 3,000 staff1982: Hygena jointly acquired with Humber Kitchens from Norcross1984: Sales reach pounds 334 million from 132 outlets. New purpose-built distribution centre opened in Bedford, and own vehicle fleet launched1977: Sales reach pounds 33 million from 52 stores. The mail order business faltered with many damage in transit claims, and was closed.

Jack Searight became new joint MD with Noel Lister.1975: The company reached 33 stores and 1,000 employees. Sales were pounds 15.2 million1976: The co-founder Donald Searle was killed in glider accident. It owns the 107-strong chain Hygena Cuisines in France, and six outlets in Spain. Other operations are in Hong Kong, Norway and Dubai.Key executives: John Hancock, chief executive; Michael Williamson, finance director; Mark Horgan, marketing director; Gordon MacDonald,: group services director. Matthew Ingle, managing director, trade; Bob Wilson, managing director, manufacturing.Number of employees: 9,200putting it all together: how mfi built a brand1964: MFI founded as Mullard Furniture Industries by Noel Lister and Donald Searle.

They traded war surplus goods and had met frequently at auctions. They used maiden name of Donald Searle’s wife, and started with cupboards, bookshelves, camping gear and basic furniture. They sold mail order off the national press pages or via Exchange & Mart. First year sales pounds 485,0001967: First store opened, in Balham1969: The number of stores had grown to nine, all on industrial sites in London and all cash-and-carry formats1971: Floated on the Stock Exchange. To intensify the pressures on him, his wife has also put her money behind his reputation. She bought 350,000 MFI shares when he was appointed last March.fact fileMarket capitalisation: pounds 276 millionTurnover: pounds 810m for the year to 24 April 1999Pre-tax profit: pounds 17.2mMain business: MFI is Britain’s largest manufacturer and retailer of fitted kitchens and bedrooms. The business also sells office furniture, beds and domestic furniture.

As well as 200 stores in the UK, the group operates a chain of 100 Howden outlets in industrial estates supplying small buildings and tradesmen. In Asia, there is huge potential though you would need different designs. But we already have a test market presence in Hong Kong.”Mr Hancock, who has just celebrated his 50th birthday, has plenty of financial incentive to do well for the long suffering MFI shareholder He has bought 140,000 shares and has options on 1.5m more. As part of shedding the old downmarket image, Mr Hancock’s team is looking at ways for customers to plan their kitchens on the MFI website.”We already know we have a world-class manufacturing business,” he says.” Two years from now we could be looking at eastern European markets such as Poland or Hungary. Tesco and Asda achieved that in the Eighties and even the Woolworth brand has been revived, though not to the same extent.” Replacing a retail brand can be both expensive and ineffective and Mr Hancock cites the conversion of Gateway to Somerfield as a prime recent example.Longer term, Mr Hancock remains “delighted” with MFI’s success in France.

“Overseas is a graveyard for most British retailers,” he says, “but MFI has made a success of it.” The group now has more than 100 Hygena stores selling just kitchens. The French stores are providing a model for an experimental store in west London which is aiming at the higher-spending customer who would not normally be seen dead at MFI and is willing to spend more than pounds 3,000 on a new kitchen or bathroom. “Some pounds 200m or more has been invested in advertising and promoting the MFI brand over the past 10 years It is still a top retail brand and you can rehabilitate it. We are not after all in a steady market like selling baked beans. It is very volatile and it is quite hard to provide protection through specialisation”.What may reassure the financial markets most about the new MFI is the quality of the team Mr Hancock has hired. Key executives include finance director Michael Williamson (ex-SmithKline Beecham) and marketing director Mark Horgan (ex Mars), operators from giant company backgrounds.