According to the Financial Times, Patisserie Valerie’s administrator, KPMG, told Sports Direct that its offer was not high enough to secure the company.
Apparently Ashley had offered £15m for the struggling cake shop chain, but was told he would need to up the bid by another £2m to be considered.
Sports Direct is understood to have expressed annoyance that it did not have access to enough reliable financial information to allow it to increase its offer.
However KPMG has said that Sports Direct was given the chance to see detailed financial material about the struggling bakery chain.
Patisserie Holdings called in the administrators last month after being unable to renew its bank facilities.
KPMG closed 71 loss-making sites, with the loss of 920 jobs. The group’s remaining 122 sites will continue to trade while a buyer is sought for the business.
Amongst the closures is the iconic Patisserie Valerie on Old Compton Street in London’s Soho.
There has been a Patisserie Valerie in Soho since the 1920’s, when it was opened by Madame Valerie on Frith Street.