The struggling furniture group MFI today said it was considering detailed offers to buy its unprofitable retail business as it reported a half-year loss.
The manufacturer, distributor and seller of kitchen cabinets made a pre-tax loss of £5.7m for the six months to June 10, compared with a £19.5m profit a year ago. Group revenue fell 11.8% to £597.1m.
Losses at MFI’s troubled 220-store retail chain increased to £14.2m, compared to £300,000 a year ago.
The Sunday Times has reported that MFI could fall into administration within weeks unless a buyer for the ailing furniture chain can be found. Its owner, Merchant Equity Partners (MEP), are said to have appointed Argyll Partners to urgently find new investors to inject fresh equity into the firm.
Stories are emerging of a rumoured relaunch of the MFI furniture chain using the Hygena and Schrieber brand names, both of which were owned by MFI. However this may not be as simple as it sounds since other retailers in the sector rush in to fill the void left by the demise of MFI.
Merchant Equity Partners, the private equity owner of MFI, the furniture retailer, is considering a bid for Jessops, the struggling camera retailer. News of Merchant’s interest comes as Jessops prepares to announce the closure of 80 stores this week as part of a strategic review.