Hancock (pictured) has left the business with immediate effect and will be replaced by Matthew Ingle, managing director of the firm's Howden Joinery business.
Ingle said he was 'determined' to improve the retailer's performance and is conducting an urgent review of strategy immediately.
MFI said: 'If the trend of the past few weeks were to continue for the remainder of the year and, assuming Howden continues to trade in line with expectations, management would expect the group to make a small loss before tax and exceptionals for the full year.'
Despite press claims, the group said it was not in breach of its bank covenants, but admitted it was in crisis talks with lenders regarding future arrangements.
Sluggish consumer spending and a slowdown in the housing market have hit MFI's performance. The retailer said trading had 'deteriorated further in a volatile marketplace'. Since its last update on September 8, net orders have decreased by 31 per cent year on year, on a like-for-like and total basis.
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