Mike Ashley’s Frasers Group has withdrawn its bid for Revolution Beauty, casting fresh doubt over the future of the struggling cosmetics retailer.
The owner of Sports Direct and Flannels confirmed it would not make an offer, despite Revolution Beauty having explored a potential takeover.
Revolution Beauty, which sells make-up and cosmetics online and through concessions, had formally put itself up for sale last month after being approached by an unnamed suitor.
Frasers had been conducting due diligence as one of several interested parties.
The beauty brand has faced significant challenges, with its shares recently plummeting to an all-time low amid tumbling sales.
Its bosses had previously informed investors they were reviewing funding options ahead of its current £32 million credit facility expiring in October.
Frasers’ decision to step away from the bidding process leaves Revolution Beauty’s path forward increasingly unclear as it grapples with its financial woes.
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.
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