Private equity firms circle furniture retailer
Private equity firm Merchant Equity Partners (MEP) and investment banker Rothschild have teamed up to make a bid for the struggling retail arm of MFI, it is understood.
The company is also thought to have attracted interest from private equity companies Alchemy, Apax Partners and Argyll Partners.
Analysts believe that MFI would have to pay in excess of£200 million to a bidder to take the retail chain - which has a pension deficit of£150 million - off its hands.
Last month, MFI revealed it was considering a number of approaches from third parties interested in its retail business. The group also said sales at its retail arm, including the Sofa Workshop chain, were down 8 per cent on a same-store basis. Orders were also down 19 per cent.
No comments yet