ScS no longer in the running to acquire Sofa.com

Furniture retailer ScS has pulled out of the running to acquire Sofa.com, paving the way for Mike Ashley to get his hands on the group.

ScS said on Friday that it is “no longer in discussions” with the firm about a deal.

It had been up against Mr Ashley’s Sports Direct to buy the firm in a multi-million-pound tie up.

However, it said in a stock market update: “ScS, one of the UK’s largest retailers of upholstered furniture and floorings, provides an update on the recent press speculation regarding the potential acquisition of Sofa.com Limited.

“The group confirms that ScS Group plc is no longer in discussions regarding a potential acquisition of the business and assets of Sofa.com.”

Sofa.com has concessions in House of Fraser, the department store Mr Ashley bought out of administration in August last year.

ScS also had 27 concessions in the chain, but has now ceased trading from all of them.

Sofa.com’s sale is being handled by KPMG.

Mr Ashley has been in an acquisitive mood of late, with the tycoon linked with bids for collapsed retailers HMV and Patisserie Valerie.

He also flexed his muscles at Debenhams earlier this month, voting to push chairman Sir Ian Cheshire off the board.