The sale of Tussauds Group by private equity firm Charterhouse Development Capital (CDC) stalled late on 5 December after CDC decided to recapitalise instead of accepting offers from either of the two remaining bidders.

Charterhouse put the entertainment group up for sale in the summer via an auction run by investment bank Lazards and two bids were subsequently received – from venture capitalist organisations PAI and London-based BC Partners.

However, the bids – believed to be at £750m and £800m – were significantly below the sought offer of £900m and were deemed not to ‘truly reflect the value of the group’s business’.

Charterhouse has subsequently decided to retain the Tussauds Group and recapitalise over the next two years while expanding the group’s business interests.

A spokesperson said: “Charterhouse decided the bids received did not fully reflect the value of the group and has therefore decided to retain its investment and is committed to funding the future growth plans of Tussauds.”

Charterhouse has owned Tussauds since 1998 and expanded the group from six to 13 attractions. Earnings have doubled from £30.7m in 2000 to £65.1m in 2002.