MFI Group Limited (In Administration)
Updated: 25 June 2009
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 assets and business 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 are currently selling 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 http://www.mcr.uk.com/assets/_files/documents/feb_09/mcr_uk__1235754005_court_order_MFI.pdf for a copy of this Order.
Non-preferential unsecured creditors, with the possible exception of customer cash or debit card customers who have received no goods, will not receive any monies as there are insufficient funds available.
The Joint Administrators' Report 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 searching on www.mfi.co.uk or on the MCR website at www.mcr.uk.com, or click here http://www.mcr.uk.com/assets/_files/documents/feb_09/mcr_uk__1235754082_MFI_-_The_Joint_Administrators.pdf for a copy of this Report.
The High Court of Justice granted an order on 3 December 2008 reliving the Administrators of the requirement to post the Report to all known creditors. Please click below for a copy of this Order.
http://www.mcr.uk.com/assets/_files/documents/feb_09/mcr_uk__1235755106_Court_Order1.pdf
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 http://www.mcr.uk.com/assets/_files/documents/jun_09/mcr_uk__1245161485_Statement_of_Affairs.pdf .
The Joint Administrators' Progress Report to Creditors
The Administrators obtained an Order from the High Court of Justice on 3 December 2008 directing that the Administrators give notice to the Company creditors of the availability of the Administrators progress report by means of a notice being placed in two national newspapers. The Administrators were also directed to post a similar notice together with a copy of the progress report on the Company's website www.mfi.co.uk and MCR's website www.mcr.uk.com.
A copy of the Administrators' Progress Report to Creditors dated 24 June 2009 for the period 26 November 2008 to 25 May 2009, is available by searching on www.mfi.co.uk; on the MCR website at www.mcr.uk.com; or clicking here http://www.mcr.uk.com/assets/_files/documents/jun_09/mcr_uk__1245944424_Scanned_Document.pdf
Customers paid a deposit or in full and have received no delivery
CREDIT 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 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.
However, there remains a possibility that funds may be set aside from the surplus held by the Company's merchant services provider for customers falling into this class of creditor but:
(1) - The Joint Administrators have no control over the funds.
(2) - Before the surplus is known these funds are subject to charge-backs from customers who have paid by Credit Card and VISA debit card pursuant to the Consumer Credit Act 1974 and the level of these remains to be determined. The Joint Administrators have no control over the level or quantum of charge-backs. However the Joint Administrators are working with the Company's merchant service provider to ensure all claims are valid.
(3) - Any distribution of funds would require the agreement of other stakeholders in the Company who under IA86 have a prior ranking interest; and
(4) - The Joint Administrators cannot give any assurance as timescales or the percentage of return you may receive; however, the merchant service provider has indicated that they will be unwilling to release any surplus funds before October 2009. The Joint Administrators will continue to work closely with the merchant service provider in an attempt to secure an earlier release of any surplus funds.
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 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
Customers will be contacted by the Administrators' representatives in order to arrange a reduction in the amount owed to the credit provider. Specific queries should be emailed to the new address blackhorse-enquiries@mcr.uk.com
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
There is no longer any requirement for creditors to submit proof of debt forms.
Cash, cheque or debit card customers who have received no goods will be contacted if and when funds are available. The Joint Administrators have details of these customers from Company records and therefore no proof of debt forms are required at this point.
Customers / Fitters / Suppliers / Creditors requesting any MFI-related documents
Please note the Administrators are unable to produce 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:
There are no funds available for general unsecured creditors.
There are currently funds available for customers who have paid a deposit or in full and paid by cash, cheque or non-VISA debit card but these are held by the Company's merchant services provider. The Administrators have all customer details taken from Company records and they will be contacted if funds do become available but this will not be before October 2009. Neither the timing nor quantum of refunds can be guaranteed.
There are no funds available for MFI 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.
Requests for copy documentation cannot be fulfilled.
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.
By the Administrators