MFI is understood to be close to unloading its loss-making furniture retailing business.
Press reports over the weekend said a deal had been secured with Merchant Equity Partners whereby MFI would pay the venture capital group £130m to take the stores chain.
Merchant would then pay a nominal £1 for the business to MFI.
However, an MFI spokesman stressed talks were continuing. MFI, which also includes the highly profitable Howden Joinery operation and a furniture-making arm, began the auction of its retail business in May; the chain made operating losses of £85m last year.
From The Guardian