Sports Direct announced today that it is pulling its takeover bid back for Blacks Leisure, which runs the Blacks Outdoor and Millets chains. The British retailer said that it is taking this step as it fears that key suppliers would not support Blacks if it took control.

Sports Direct, earlier this week, blamed Blacks of leaking the names of suppliers that were unwilling to do business with Sports Direct. However, Blacks denied the allegation made by Sports Direct.

Sports Direct already owns 29% stake in Blacks Leisure. Sports Direct offered a complete takeover bid of £42 million for Blacks Leisure with a timeline of April 1, 2010.

Now the retailer said in a statement today that it was aware certain key suppliers would not support a takeover and said that meant it was difficult to put a proper value on Blacks.

"Without clarification in relation to this issue, Sports Direct has been unable to finalize its views on the value of any potential offer," said Sports Direct.

Earlier in the year, Sports Direct, owned by Newcastle United soccer club boss Mike Ashley, has blocked a £23 million fundraising by Blacks Leisure.