Sports Direct has cancelled a bid to save Patisserie Valerie from administration, just two days after tabling the offer.
Mike Ashley announced his bid on Friday evening.
Sports Direct offered £15m, but according to the Financial Times, administrators KPMG told the retailer that it would need to offer at least £2m more than this.
Mr Ashley faced competition from Costa Coffee for the takeover.
Patisserie Valerie collapsed following an accounting scandal that left the firm with out enough money to pay its debts.