Merchant Equity Partners (MEP) is in talks with MFI about a deal, which may involve MEP paying a nominal £1 for the business.
The development follows the closure of MFI’s Stockton and Scunthorpe factories earlier this year with the loss of more than 1,000 jobs.
MFI has endured a difficult recent trading period, suffering a pre-tax loss of £110.8m in 2005, compared to profits of £20.6m in 2004. Sales for the first half of 2006 were down 25.1%.
The company’s joinery business Howden Joinery remains in profit.
