US buyout firm Blackstone Group has dropped out of the auction for UK retailer Matalan. Blackstone and four other private equity firms – TPG Capital, BC Partners, Advent International and Warburg Pincus – reportedly submitted first-round bids last week.

However, Blackstone is no longer part of the process, according to sources close to the auction. One source said the Blackstone bid had come in about £1bn (€1.1bn), lower than the others.