MFI parent company Merchant Equity Partners (MEP) has appointed Argyll Partners to find new investors that can pump money into the company as a matter of urgency.

The Sunday Times reported that MEP is thought to have asked Argyll to find a buyer in the coming weeks or the retailer could fall into administration.

In the past month it has been reported that MEP has been in talks with other retailers about forming a partnership. These include Homeform, which owns Moben Kitchens, and Nobia, which owns Magnet Kitchens.

In July, it emerged that two directors from restructuring specialist Hilco joined the board of MEP Mayflower – MFI’s ultimate parent company – and that the retailer had brought in restructuring expert Kroll Talbot Hughes. MFI insisted that this did not signal a need for emergency surgery.