MFI Group revealed at its AGM last week that it has received several approaches for its embattled 200-strong UK retail division.
Sofa specialists DFS and Land of Leather, bed retailer Dreams and colonial-style homewares chain Lombok are tipped to be interested in taking MFI stores if the opportunity arises.
A source close to the situation said: 'The portfolio is interesting big boys such as Asda Wal-Mart and electricals retailers. But the [MFI] stores are very big and the chain will probably have to be split up.' Investec analyst Mark Charnock said he believed financial and trade bidders are interested.
An MFI acquisition by Asda would give the Wal-Mart-owned chain a nationwide platform for its non-food Asda Living stores, which it is keen to expand.
The group remained tight-lipped about potential offers or bidders. However, it insisted all offers are being considered in light of chief executive Matthew Ingle's turnaround, which separated MFI's retail division from builders' merchant Howden and its supply operation.
Separately, Land of Leather is to grow its business after posting solid results. The retailer will unveil 10 stores by July and will continue to to open at that rate each year. Revenue jumped 24 per cent to£193.9 million for the year to April 2. Like-for-like orders rose 4.5 per cent.
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