FURNISHING chain MFI, which has a showroom in Whitebirk, is being tipped for a merger with the owner of rival kitchens brand Moben.

Merchant Equity Partners, which bought MFI for a nominal £1 in 2006, is said to be exploring potential combinations for the business, as well as the possibility of attracting further investment.

Reports suggest MFI is looking at a merger with its British rival Homeform, which owns brands Moben, Kitchens Direct, Sharps and Dolphin.

Manchester-based Homeform has 160 showrooms across the UK with more than 1,300 employees and 1,500 self employed fitters and designers.

MFI established itself as a major player in home furnishing shortly after it was founded in 1964 by Noel Lister and Donald Searle.