Embattled retailer raises £92 million in French deal
Kitchens to bedrooms retailer MFI has sold its French retail business, Hygena Cuisines, to Nobia for£92 million as part of an ongoing recovery plan.

The sale followed a competitive auction process and the cash proceeds will be applied to reducing the group's bank debt.

Hygena Cuisines' management team supported the transaction and will continue to run the business. MFI will supply Hygena Cuisines with kitchen furniture products for three years as part of the sale.

Although Nobia has also acquired the Hygena trademark in Continental Europe, MFI's ability to expand its Howden Joinery business outside the UK is unaffected, said the company. Howden operates 12 French depots through Houdan Menuiseries.

'The sale and cash receipt strengthen our ability to focus our efforts on the recovery and growth of the group here in the UK,' said MFI chief executive Matthew Ingle.

Numis analyst Steve Davies called the deal sensible, at a price that suggested it was not a fire sale.

He speculated that the cash injection could mean MFI no longer requires a rights issue to dig its way out of debt. However, the group may still choose to raise capital to reduce its pensions deficit or to invest in the retail business.

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