DFS, the UK’s largest furniture retailer, is considering a float or third-party investment.

Any deal would mean a windfall for chairman and owner Lord Kirkham, who took the company private five years ago for £507m, after a battle with shareholders who accused him of trying to buy back the company cheap.

According to reports, Kirkham is conducting a review to consider options.

A spokesman said: “Through our City adviser, we are exploring options, which may include a possible IPO or third-party investment.”

DFS is the latest in a list of retailers to consider floating this year including Matalan, New Look and Pets at Home.

Kirkham is understood however to have carried out similar reviews in the past but decided against any action.