Furniture retailer Dwell has hired advisers to look at its options for the future of the business, which includes a possible sale.

Argyll Partners have been appointed to explore the best options for the 24-store retailer.

It is understood Argyll has already put feelers out to potential investors about buying Dwell at a knockdown price, according to The Independent.

The move comes as Dwell Retail’s pre-tax losses widened to £675,320 from £456,349 in the year to January 27, 2012, according to its latest accounts. Group turnover increased 3% to £34.5m over the period, driven by six store openings.

Furniture and DIY retailers have been hit by the difficult economy as consumers have cut back spending on big-ticket items and it has become less affordable for people to buy their own houses.

Dwell was founded as a mail-order furniture business in 2003 by Aamir Ahmad, who stepped down as managing director in November after a refinancing. Ahmad remains an investor in the company alongside private equity firm Key Capital Partners. Dwell chairman Neil McCausland also left last year.

The business is now headed up by Rebecca Cotterell, former chief executive of Adams Childrenswear.

In its annual report, Dwell said the refinancing and the termination of an onerous lease on a warehouse “provide a strong platform for the future growth of the company”.

All parties declined to comment.