HomeForm could link up with rival MFI
MOBEN and Sharps owner HomeForm is reported to have had talks regarding a merger with UK rival MFI.
The two private equity groups that own the Old Trafford-based kitchens, bathrooms and bedrooms group and furnishings giant MFI are said to be looking at combining the businesses to create a group with 360 stores and more than 5,000 staff.
HomeForm – which also owns the Kitchens Direct, Sharps and Dolphin brands – is owned by Sun European and has 160 showrooms across the UK and 1,300 employees and another 1,500 self-employed fitters and designers.
Merchant Equity Partners bought MFI for a nominal £1 in 2006 and is now said to be looking at ways of strengthening its position given the weakening market from falling consumer spending.
Talks are also said to have taken place with Nobia, the Swedish retailer, about combining its UK business Magnet Kitchens with MFI.
A spokesman for Merchant said that it had been happy with operational progress since the 2006 deal, but that recent market conditions had prompted it to consider its strategic options and “possible business combinations”.
MFI – one of Britain’s best known retail brands – established itself as a major player in home furnishing shortly after it was founded in 1964 by Noel Lister and Donald Searle, who called it Mulland Furniture Industries after Searle’s wife’s maiden name.
Its position as market leader was hit by the growth of stores such as Ikea, B&Q and Homebase, causing sales to fall from £854m in 2003 to £742m in 2005.
