MFI is set to shut 11 stores
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Furniture factory workers facing the redundancy are being offered support to find new jobs.
Earlier this week, MFI unveiled a major restructuring aimed at reviving its fortunes, which could see up to 1,500 jobs being shed.
About 930 of the jobs at risk are at the Stockton and Scunthorpe factories which have been earmarked for closure.
The Transport and General Workers Union said it was working with the company to lessen the impact of the job losses.
Union officials said the company will look for voluntary redundancies, vacancies and redeployment opportunities.
Mitigate impact
Both parties will work with local MPs to identify where there may be support and assistance from government agencies.
In addition, MFI is to give �100,000 to any external agency support to go towards re-training and skills development for workers facing redundancy.
T&G regional industrial organiser Ian Wood said: "Although we cannot avoid the closures and redundancies we have managed to secure commitments from the company to voluntary means and redeployment where possible.
"Our aim is to mitigate the impact of the closures on the workforce and on the local communities and economy."