MFI in search of emergency funding

MFI, the struggling
furniture retailer, MFI is understood to be urgently trying to secure new terms
with its landlords before its quarterly rent bill just as it starts seeking
emergency funding.

A source familiar with the talks told The Times
Merchant Equity
(MEP), the private equity group which bought MFI for a nominal £1
two years ago, wished to change some of the leases on MFI stores to pay rents on
a monthly basis.

‘All I can say is that Merchant Equity Partners is continuing to review
strategic options for the business,’ a company spokesman said.

MFI brought in corporate restructuring expert Kroll Talbot Hughes two months
ago and MEP maintained at the time Kroll had been hired to boost the retailer’s
‘under-resourced finance function’.

Further reading:

The Times story

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