MFI Group Limited (In Administration)

MFI Group Limited (formerly In Administration) ("MFI") or ("the Company")

Updated: 23 May 2011

There were insufficient funds to make a distribution to unsecured non-preferential creditors of the Company and as such, Form 2.35B ("the Notice") has been submitted to the Registrar of Companies pursuant to Paragraph 84 of Schedule B1 to the Insolvency Act 1986 ("the Act").

Following registration of the Notice by the Registrar of Companies, the Joint Administrators' appointment will cease to have effect, and they will be discharged from liability under Paragraph 98(3) of Schedule B1 to the Act.  At the end of three months, beginning with the date of the Notice being registered to the Registrar of Companies, MFI will be dissolved.

A copy of the Joint Administrators' final progress report, for the period 26 November 2010 to 20 May 2011 can be viewed by clicking here .

MFI has no funds available for any customers, suppliers or contractors who have suffered a financial loss as a result of its insolvency.

MFI cannot respond to customers, fitters and trade suppliers, nor can MFI provide any other information than is contained on this website update.

No further updates will be provided.

Background to the Administration

Philip Duffy, Geoff Bouchier and Paul Clark ("the former Administrators") of MCR were appointed as Joint Administrators to MFI Group Limited on the evening of 26 November 2008. All of the former Administrators are licensed by the Insolvency Practitioners' Association.

A going concern sale of the Company's business and assets was not possible despite the former Administrators' best endeavours. Accordingly, MFI ceased the operations of the business and all stores are closed.

Administrators distribute to creditors in the prescribed order of priority as set out in the Act. Broadly, the order of priority is as follows:

(1) - Preferential Creditors (certain categories of employee claims)

(2) - Prescribed Part distribution to Unsecured Creditors (includes customers, suppliers and fitters) this is capped at £600,000 in accordance with the Act to share equally between ALL unsecured creditors.

(3) - The Secured Lenders (who have registered charges over the Company or its assets)

(4) - Unsecured Creditors (includes customers, suppliers and fitters)

Pursuant to an Order of the High Court of Justice dated 16 February 2009, the former Administrators were granted relief to disapply the requirement of s176A of the Act to make the ‘Prescribed Part' available. This means that the order of priority omitted (2) above. Please click here for a copy of this Order.

Unsecured non-preferential creditors will not receive any monies as there are insufficient funds available.

Customers seeking information on product warranties/guarantees

THIRD PARTY WARRANTY COVER

Customers with third party insurance cover, such as AIG or London General, should contact their warranty provider directly to assist. MFI cannot assist with these enquiries.

THIRD PARTY MANUFACTURER WARRANTY

Customers owning goods manufactured by a third party, such as Bosch or Indesit, and still within the manufacturer's warranty period, should contact the manufacturer directly to assist.

MFI OWN BRAND PRODUCTS AND MFI EXTRACARE EXTENDED WARRANTY

MFI is unable to facilitate repairs or replace items and therefore is unable to assist customers with faulty items and damaged goods. These claims are classed as non-preferential unsecured claims against the Company. There are no monies available to this class of creditor.

Customers / Fitters / Suppliers / Creditors requesting any MFI-related documents

Company records are not available to reproduce any documents that MFI previously produced, this includes the following documents:

• Copies of Sales Invoices
• VAT Invoices
• Remittance advices for fitters or trade suppliers 
• Proof of payments made
• Proof of non-delivery
• Instruction Manuals
• Electrical Safety Certificates
• Insurance Certificates
• Supplier information

Fitters and trade suppliers

All debts owed to fitters and suppliers incurred prior to the Administration are unsecured non-preferential claims against the Company. There are no monies available to this class of creditor from the insolvent estate.

By the former Administrators