Mike Ashley’s Frasers Group has pulled out of the bidding process for Revolution Beauty, after the cosmetics retailer told shareholders it had been exploring a possible takeover.
Frasers, the retail giant which owns Sports Direct and Flannels, said it “now confirms that it does not intend to make an offer” to buy the business.
Revolution Beauty formally put itself up for sale last month after being approached by an unnamed suitor.
It later told investors that Frasers was “one of a number of parties conducting due diligence” before a potential bid.
Frasers’ withdrawal from the bidding war raises questions over the future of the troubled beauty brand.
Revolution Beauty, which sells make-up and cosmetics online and through concessions, had recently seen its shares slide to an all-time low in the face of tumbling sales.
Bosses had previously told investors they were reviewing its funding options before its current £32 million credit facility expires in October.
The company has faced a torrid few years amid leadership and accounting issues, including a dispute with its former boss and a tussle with one of its shareholders, fashion firm Debenhams, under its previous Boohoo Group name.
Frasers has recently built up investments in a number of other retailers, including online specialist THG, which owns rival beauty brands including LookFantastic and Cult Beauty.
It also owns a raft of other brands including Jack Wills, USA Pro and I Saw It First.
Frasers was founded by business mogul Mike Ashley – the former owner of Newcastle United Football Club.
