Struggling photo retailer Jessops is reportedly being eyed up by the owners of MFI. Private Equity firm Merchant Equity Partners, who paid just u00a31 for the furniture chain last October, specialises in buying, and turning around, under-performing retail businesses.

Struggling photo retailer Jessops is reportedly being eyed up by the owners of MFI. Private Equity firm Merchant Equity Partners, who paid just £1 for the furniture chain last October, specialises in buying, and turning around, under-performing retail businesses.

Jessops certainly qualifies, having posted three profit warnings this year amid plummeting sales. Jessops? bankers have already called in business recovery experts to examine their options, and up to 80 of their 315 stores are believed to be facing the axe.

Although sales of digital SLRs are showing strong growth, Jessops has been caught out by the decline in sales of compacts, in which it invested heavily, as well as competition from the internet and debts caused by its rapid expansion.