THE number of jobs lost at a furniture retailer in the region has increased after sales plummeted.

MFI announced another sharp deterioration in sales yesterday, with orders 31 per cent lower than a year ago.

Unions confirmed that 87 staff had taken voluntary redundancy following a consultation period at MFI's Stockton plant, which manufactures kitchen and bedroom cupboard doors for the group's Hygena range.

The Northern Echo reported in August that MFI was shedding 80 jobs as the consumer slowdown continued to bite.

But Allan Gray, of the Transport and General Workers' Union, said that during the consultation process, MFI's sales slumped again, and another seven workers took voluntary redundancy on Thursday.

Nearly 200 jobs have gone at the factory in the past two years, with the workforce shrinking from more than 700 to about 520.

Mr Gray said: "They haven't been able to say there won't be any more redundancies. But I hope not, especially now we are getting into the Christmas period."

The chief executive of MFI, John Hancock, stepped down yesterday. He will leave the company immediately. Mr Hancock will be replaced by Matthew Ingle, who is managing director of MFI's Howden Joinery business.

The 31 per cent fall in sales at the UK retail division compares with a fall of 15 per cent in the previous 13 weeks.

With trading conditions unlikely to pick up soon, MFI said it had been in discussions with the group's lenders.

The company said it had not breached any banking covenants.

Mr Ingle, who joined MFI in 1995 and has led the development of Howden Joinery, said he was "urgently reviewing" the strategy of the group, and said that he was determined to improve the performance.

MFI is one of a number of retailers to suffer from consumers' reluctance to spend on so-called big-ticket items. Others to feel the downturn in recent months have included B&Q and Comet.

The company has been under pressure following last year's shake-up of its supply chain, which replaced an outdated system that could no longer support the growth of the company.

Howden has helped offset the downturn at MFI as its profits under Mr Ingle's leadership have risen from £9m in 1999 to £100m last year.