The auction for British online retailer Very Group is unlikely to go ahead after bidders failed to reach the £2 billion asking price, Sky News has reported.

The news outlet has learned that the sale process, first reported in January, is close to being aborted after potential buyers, including Chinese retail giant JD.com, were unwilling to meet the initial bid.

The decision to cancel the process will leave US private equity group Carlyle as Very Group’s owner for the foreseeable future.

Sources told Sky that a sale had been one of the conditions for Carlyle, a longtime creditor of the business, to assume control from the Barclay family in Autumn last year. However, sources added, the deal did not oblige Carlyle to sell at any price, and £2 billion was understood to be the lowest bid it would accept.

JD.com was reportedly serious about acquiring the company, which has more than £2 billion in annual revenue and 4.4 million customers.

Sources told the news site that an EU probe into its attempt to buy German retailer Ceconomy for €2.2 billion meant it had become reluctant to take on another major transaction until the deal was concluded.

The source added that increased scrutiny of JD.com’s expansion in the UK following the launch of its Joybuy platform earlier this year was another complicating factor.

The Very Group auction initially drew interest from private equity groups and other financial investors including US fund manager Elliott Advisors, Sky reported.

Very Group includes the Very and Littlewoods brands, as well as a consumer finance arm. It is chaired by former Conservative chancellor and current Reform UK member Nadhim Zahawi.

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