The proposed sale of Rank Group subsidiary Deluxe, a film distribution and processing business, is under threat after potential buyers discovered that customers will be able to renegotiate contracts in the event of a change in ownership.

Rank, which has hired Goldman Sachs as financial adviser on the sale process, is believed to be looking for about £600m (€882m) for the unit, which generated profits of £19.2m on turnover of £359m in the six months to June 30, 2005.