Online retailer Shop Direct has lost bidding interest from some of the world’s biggest buyout firms as concerns are raised over its reliance on consumer credit.
Private equity groups including CVC Capital Partners and Carlyle have decided not to issue a bid for the company, ahead of the deadline for initial offers this week, according to Sky News.
It is understood that the firms were in initial talks with Shop Direct, which is owned by the Barclay brothers alongside the Ritz hotels and The Telegraph, which is thought to have a price target of £3 billion.
READ MORE: Shop Direct owners seek £3bn sale
The owners announced plans to explore sale of the company, which incorporates brands including Very.com and Littlewoods.com, last month.
Sources close to the business have stated that increasing scrutiny and regulation over consumer finance activities have driven away potential buyers, as Shop Direct is one of the UK’s largest retail credit providers.
This may lead to the Barclay brothers to restructure the sales process, opting to offload a minority stake rather than sell full control.
The online retailer has performed well recently, posting £150 million underlying profits last year.