Radio Shack hired Goldman Sachs (NYSE: GS) back in March to explore strategic options. The most likely one, according to the conventional wisdom, was a sale to private equity firms (private equity news).

Goldman Sachs has been running an auction of sorts, one that attracted some big names. But now Reuters reports that the Blackstone Group and TPG, which had been working on a joint bid, have dropped out. Bain Capital had also been interested earlier, but it, too, has apparently ceased its efforts.

You have to wonder what is going on. Certainly, the firms would be buying low, as mass-market retailers have hit something of a nadir. It may be that the firms have concluded the $2.7 billion market capitalization seems a bit rich.

Should we hold out hope for a strategic buyer? The pickings unfortunately are slim. Best Buy would appear to be the most likely candidate. Investors may be losing hope for a deal at all, as the stock has fallen nearly 17 percent over three months.

For more:
- here's the article
- here's a MarketWatch article

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