(Reuters) – Blackstone Group (BX.N) and TPG Capital are unlikely to continue to pursue a possible bid for RadioShack Corp (RSH.N), two sources familiar with the situation said on Monday.
The two private equity firms were working together to draw up a possible bid for the electronics retailer, which has a market value of about $2.7 billion.
The sources did not want to be named because the process is not public.
Bain Capital had been interested earlier but is no longer in the auction, sources previously told Reuters.
RadioShack has been exploring strategic options and hired Goldman Sachs Group Inc (GS.N) earlier this year to advise it.
RadioShack, which is trying to rebrand itself as “The Shack,” has been focusing on its wireless business to offset weak sales of products like TV converter boxes, video game systems and batteries.
Bloomberg News first reported that TPG and Blackstone would likely withdraw from the auction. Blackstone and TPG declined to comment.
Other buyout firms have also expressed interest in RadioShack such as Advent International, sources previously told Reuters