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Galiform slims down operations at cost of £35m

This article is more than 16 years old

Kitchens and furniture group Galiform is axeing 560 jobs as part of a restructuring following the sale of its loss-making MFI business last year.

It will close its kitchen components manufacturing operations in Hull with the loss of 200 jobs, and another 170 jobs are going in warehousing and transport operations in Northampton. Its Howden site in north west England is cutting around 145 jobs and a further 45 are going at its Runcorn factory.

Galiform owns the Howden Joinery chain and sold its loss-making MFI furniture business to private equity groupMerchant Equity Partners last year.

Today it said the Howden business continues to trade well and is on course to open 60 depots this year, creating around 550 new jobs.

The cost of the restructuring will be £35m, including around £25m in redundancy costs.

News of the Galiform job losses today follows yesterday's announcement that travel agent Thomas Cook is to close 150 stores and six offices, putting as many as 2,800 jobs at risk.

The closures follow German-owned Thomas Cook's £8bn merger with rival MyTravel earlier this month.

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