Merchant reportedly in pole position
MFI is understood to be close to making a deal for the sale of its loss-making retail chain.

Reports in the weekend press said the furniture group has chosen private equity firm Merchant to buy the stores for a nominal sum of£1. It is also expected that MFI will pay Merchant£130 million to take the chain off its hands.

The company is expected to make a formal announcement at some point over the next few weeks.

In May this year, the furniture group revealed it had received a number of approaches from third parties interested in its retail business. Private equity groups Apax and Argyll Partners have both been linked to the retailer.

The retail division made an operating loss of£85 million last year. It also has a pension deficit of£150 million.

Topics