The Warehouse Group says it has suspended its discussions with Adamantem Capital Management regarding a potential acquisition of the company after failing to receive approval from a key shareholder.

“The current scheme of arrangement doesn’t have the critical shareholder backing it needs to proceed,” said Dame Joan Withers, The Warehouse Group chair.

“With that in mind, the board has decided to defer further talks until such time as the proposal has wider shareholder support.

“We acknowledge the interest from Adamantem Capital and the backing from Sir Stephen Tindall, however, without broader shareholder support, it is not prudent for us to pursue this proposal further.”

Last month, The Warehouse Group said it received an approach from Sir Stephen Tindall and Adamantem Capital Partners about a potential interest in acquiring its shares.

Tindall founded The Warehouse Group in 1982. Currently, Tindall and the Tindall Foundation own more than 50 per cent of the group.