Two investment companies behind a £2.07bn takeover bid of THG have confirmed they will not make a formal offer for the company.
Belerion Capital and King Street Capital Management made the announcement after they first revealed the unsolicited offer of 170p per share last month.
Under the London Stock Exchange's rules, the companies had to state by June 16 whether an offer will be made or not.
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However, Belerion Capital and King Street Capital Management still have the right to make or participate in an offer for THG within the next six months.
Belerion’s co-founder and chief investment officer Iain McDonald is a non-executive director of THG.
Property tycoon Nick Candy, who is weighing up making an offer to buy THG in a deal worth £1.4bn, has not yet made a formal announcement on whether he will make an offer or not.
A THG statement said: "As confirmed in the company's preliminary FY 2021 results and Q1 2022 trading update on 21 April 2022, THG has received indicative proposals from numerous parties in recent months.
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"Furthermore, as announced on 19 May 2022, an indicative non-binding proposal from a consortium led by Belerion Capital Group Limited and King Street Capital Management, L.P., had been rejected by the board of THG.
"All recent approaches for THG have been unsolicited, and in the unanimous opinion of the board, were unacceptable and significantly undervalued the company.
"After consulting with THG's major shareholders and taking advice from the company's advisors, the board has not considered it appropriate to provide due diligence access to any of these parties.
"In accordance with Rule 2.6(c) of the code, the board has determined that it is not appropriate to seek an extension to the deadline set out in the company's announcement dated 19 May 2022.
"While THG is clearly aware of the macro-economic challenges, the company continues to perform well, and in line with its own expectations."