MCR voted MidTier/Boutique Restructuring Firm
of the Year 2010
MFI Group Limited (In Administration) ("MFI") or ("the Company")
Updated: 22 June 2010
Please note that the Joint Administrators sought a court order to extend the Administration for a further period of 12 months to 25 May 2011. Further details are contained in the Progress Report for the period 26 November 2009 to 25 May 2010. For a copy of the Progress Report please click here.
Introduction and overview
Philip Duffy, Geoff Bouchier and Paul Clark of MCR were appointed as Joint Administrators ("Administrators") to MFI Group Limited on the evening of 26 November 2008. All Administrators are licensed by the Insolvency Practitioners' Association.
The affairs, business and property of the Company are being managed by the Administrators, who act as agents of the Company and without personal liability. The role of the Administrator is to deal with the business and assets of the insolvent estate. Their role is not to replace the Directors of the Company nor are the Administrators accountable for the management of the business prior to their appointment.
A going concern sale of the Company's business and assets was not possible despite best endeavours. Accordingly, the Administrators ceased the operations of the business and all stores are now closed. The Company is not fulfilling any orders.
The Administrators continue to realise the remaining assets of the Company in order to raise funds to distribute to creditors in the prescribed order of priority as set out in the Insolvency Act 1986 ("IA86").
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 IA86 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 Administrators were granted relief to disapply the requirement of s176A of the IA86 to make the ‘Prescribed Part' available. This means that the order of priority now omits (2) above. Please click here for a copy of this Order.Non-preferential unsecured creditors, with the possible exception of cash, cheque or non Visa debit card customers who have received no goods, will not receive any monies as there are insufficient funds available.
The Directors' Statement of Affairs
In accordance with Paragraph 47 of Schedule B1 to the Insolvency Act 1986, the Administrators requested that the directors provide them with a statement of the affairs of the Company.
A summarised copy of the directors' statement of affairs can be viewed by clicking this link.
The Joint Administrators' Reports to Creditors and Statement of Proposals
The Administrators' Report to Creditors and Statement of Proposals ("the Report") dated 5 December 2008 was approved by the body of creditors. A copy is available by click here.
The High Court of Justice granted an order on 3 December 2008 relieving the Administrators of the requirement to post the Report to all known creditors. Please click here for a copy of this Order.
The Joint Administrators' Progress Report to Creditors
Customers who paid a deposit or in full and have received no deliveryCREDIT CARD AND VISA DEBIT CARD PAYMENTS
Customers should contact their card issuer to initiate a charge-back of any sums paid. The Administrators are unable to provide customers with proof of non-delivery. Please note the timing and quantum of charge-backs by the card issuers is beyond the control of the Administrators and no assistance can be provided in this regard. However the Joint Administrators are working with the Company's merchant service provider to ensure all claims are valid.
CASH, CHEQUE AND NON-VISA DEBIT CARD PAYMENTS
Under the order of priority set out in IA86 there would ordinarily be no funds available for customers who paid a deposit or in full by cash, cheque or non-VISA debit card.
The Administrators continue to work alongside the Company's merchant service provider in order to secure the release of monies that were previously held back to cover charge back exposure on credit cards.
Whilst it was previously anticipated by the Company's management that there would be sufficient funds to cover the total outstanding liabilities of customers who had paid by cash, cheque and non visa debit cards, given the higher than forecast charge backs, this now appears unlikely. However we will continue to work closely with the merchant service provider to determine whether monies will be made available to make a partial contribution towards monies owed to cash, cheque and non VISA debit card customers.The timing and quantum of any contribution is not known at present.
INTEREST-FREE AND OTHER CONSUMER CREDIT ARRANGEMENTS
Customers who made arrangements to pay for their order using any form of interest free or other consumer credit and who have not received a delivery are unaffected by this process. The customer will not be required to make payments under any such arrangements.Customers who have paid in full and received a partial delivery
CREDIT CARD AND VISA DEBIT CARD PAYMENTS
Customers should contact their credit card issuer to initiate a partial charge-back for the incomplete part of their order. The Administrators cannot accept product returns. Please note the timing and quantum of charge-backs by the credit card issuers is beyond the control of the Administrators and no assistance can be provided in this regard.
CASH, CHEQUE AND NON-VISA DEBIT CARD PAYMENTS
These claims are classed as non-preferential unsecured claims against the Company. There will be no monies available to this class of creditor from the insolvent estate.
INTEREST-FREE AND OTHER CONSUMER CREDIT ARRANGEMENTS
Specific queries should be emailed to the address blackhorse-enquiries@mcr.uk.com where they will be dealt with by the Joint Administrators' representatives.
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. The Administrators cannot assist with these enquiries.
THIRD PARTY MANUFACTURER WARRANTY
Customer 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
The Administrators are unable to facilitate repairs or replace items and therefore are unable to assist customers with faulty items and damaged goods. These claims are classed as non-preferential unsecured claims against the Company. There will be no monies available to this class of creditor from the insolvent estate.
Proof of debt forms
Cash, cheque or non VISA debit card customers who have received no goods will be contacted if and when funds are available.
Customers / Fitters / Suppliers / Creditors requesting any MFI-related documents
Company records are not available to reproduce any documents that MFI Group Limited 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 Administrators appointment will be non-preferential unsecured claims against the Company. There will be no monies available to this class of creditor from the insolvent estate.
Employees
REWARDS 4 ALL SCHEME
Please note all Rewards 4 All credits rank as non-preferential unsecured claims against the Company. There will be no monies available to this class of creditor from the insolvent estate.
ALL OTHER QUERIES
All employee queries should be sent to mfi@mcr.uk.com, quoting ‘employee' in the subject line and will be responded to.Additional Information
Please note the Administrators are unable to provide customers, fitters or trade suppliers with any other information other than the information contained on this website update.
The Administrators will not be responding individually to customers, fitters and trade suppliers.
Correspondence requesting a response will receive a copy of the latest website update only.
There is no further information available.
In summary:
• MFI has no funds available for customers, suppliers or contractors who have suffered a financial loss as a result of its insolvency.
• However, there may be funds available to make a contribution to those customers who have paid by Cash, Cheque and non Visa debit card and received no goods. The timing and quantum of any contribution is not yet known.
• MFI has no funds available to repair or replace faulty goods.
• There are no funds available for customers with a claim against MFI for faulty goods.
• There are no funds available for customers with partial deliveries who have paid by cash, cheque or non-VISA debit card.
• MFI cannot fulfil requests for copy documentation.
• Product returns cannot be accepted.
• Assistance with charge-backs against credit or VISA debit card issuers can no longer be provided and Warranty queries can no longer be answered.
• There is no requirement for creditors to submit proof of debt forms.
• The Administrators cannot respond individually to customers, fitters or trade suppliers.
The 17 May 2010 update needs to be deleted
By the Administrators
