LONDON (AFX) - MFI Furniture Group PLC has slumped to a first half loss and said talks about the probable sale of its stressed eponymous UK Retail chain are ‘progressing’. 

The group exposed on May 19 it had received ‘expressions of interest’ in all or part of its 200-store UK Retail business from a number of third parties.Today it said: ‘We are evaluating numerous detailed proposals for our Retail business, all of which would involve the group continuing to supply the business for a transitional period and the group providing material financial support to the purchaser.’ 

‘In addition, the group will retain its pension obligations to Retail employees and former employees in respect of past service.’ Reports have identified private equity groups Apax, Argyll Partners and Merchant Equity Partners as latent buyers. 

For the 24 weeks to June 10 MFI made a loss before tax and outstanding items from ongoing operations of 5.7 mln stg compared to a profit of 19.5 mln stg last time as sum revenue fell 11.8 pct to 597.1 mln stg.