Troubled division could go for £1
MFI has confirmed it is talks with private equity group Merchant Equity Partners (MEP) over the sale of its retail division.

The confirmation follows speculation in the Financial Times today that the two parties were poised to complete a deal which would see the furniture group dispose of its retail business for a nominal sum of£1. It is also expected that MFI will pay a dowry of about£200 million for the private equity company to take the troubled retail arm off its hands.

In a statement, MFI said it was in discussions with MEP, but a number of significant issues remained outstanding. It added that discussions may or may not lead to a transaction, which the board would consider along with other options for MFI Retail.

MFI first revealed in May that it was considering a number of approaches from third parties interested in its 200-store retail chain.