Troubled furniture company, MFI has appointed Dresdner Kleinwort Wasserstein, the investment bank, to auction the 200-strong chain of stores in the move to disband the group, which also has Howden joinery, the builders' merchants.
A sales shop can lead to loss of the famous brand MFI, which started in 1960 making flat-packed furniture.
Provide confirmation revolutionary changes sweeping the retail sector, who were forced to adapt to globalization and cut-throat competition from more efficient rivals such as Ikea.
The decision to launch a formal sales process comes more than a week after the group has received bids revealed several approaches for all or part of the MFI furniture retail business. Interested parties including Nobia Swedish furniture group, which has a kitchen, a business magnet.
South Africa-based Steinhoff Group, which owns 60% stake in Homestyle furniture group, is also said to be interested. Homebase also can see the business.
Dresdner sale document began circulating last week in an effort to revive interest in MFI street and out-of-town furniture stores.
Analysts believe the retail division is in such poor state of health that "negative premium" will be attached to the sale of the business. This is exacerbated by MFI's £ 150m (E216m, $ 277m) pension deficit, which may also be a factor in any possible deal. In the year 2005 MFI made an operating loss of £ 85.1m.
Analysts believe that if a buyer can find a way to reverse the slide, the name will remove for ever.
Steve Davies, retail analyst at Numis Securities, said: "It will come down to what [MFI] will have to pay someone to take it off their hands. If they could get rid of it for anything, they would jump at the chance."
Although it would be difficult to swallow pills, Davies was sure it would be good for the company's long-term health. "If they get out of retail, they would return given the value," he added.
As part of the restructuring announced in February, MFI also plans to sell the 29-store Sofa Workshop chain. www.thebusinessonline.co.uk
A sales shop can lead to loss of the famous brand MFI, which started in 1960 making flat-packed furniture.
Provide confirmation revolutionary changes sweeping the retail sector, who were forced to adapt to globalization and cut-throat competition from more efficient rivals such as Ikea.
The decision to launch a formal sales process comes more than a week after the group has received bids revealed several approaches for all or part of the MFI furniture retail business. Interested parties including Nobia Swedish furniture group, which has a kitchen, a business magnet.
South Africa-based Steinhoff Group, which owns 60% stake in Homestyle furniture group, is also said to be interested. Homebase also can see the business.
Dresdner sale document began circulating last week in an effort to revive interest in MFI street and out-of-town furniture stores.
Analysts believe the retail division is in such poor state of health that "negative premium" will be attached to the sale of the business. This is exacerbated by MFI's £ 150m (E216m, $ 277m) pension deficit, which may also be a factor in any possible deal. In the year 2005 MFI made an operating loss of £ 85.1m.
Analysts believe that if a buyer can find a way to reverse the slide, the name will remove for ever.
Steve Davies, retail analyst at Numis Securities, said: "It will come down to what [MFI] will have to pay someone to take it off their hands. If they could get rid of it for anything, they would jump at the chance."
Although it would be difficult to swallow pills, Davies was sure it would be good for the company's long-term health. "If they get out of retail, they would return given the value," he added.
As part of the restructuring announced in February, MFI also plans to sell the 29-store Sofa Workshop chain. www.thebusinessonline.co.uk
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