Surfwear retailer, Billabong, has placed its Canadian retail division up for sale, a further sign that the company does not expect a full takeover to proceed.

The sale will include the 70 store West 49 chain, which Billabong purchased for $91 million in 2010, as well as its six Billabong-branded stores, 18 trading under the Amnesia banner and two under the Element banner, reports The Australian.

Laura Inman, CEO of Billabong, has been proceeding with plans to close 160 underperforming stores from a portfolio of 625 by the end of the financial year, but has repeatedly delayed plans to further consolidate the business while potential takeover suitors continue to consider a buyout proposal. The company has been under threat of takeover since February last year, with three potential buyers having pulled out after being given access to examine the company’s accounts.

According to The Australian, one potential buyer of the Canadian business is US sporting goods chain Zumiez, which in 2010 attempted to derail Billabong’s purchase of West 49 with a last-minute offer to pay a higher price if it were allowed to conduct due diligence scrutiny on the target company, during which time it would be subject to a standstill agreement.

On May 7, shares in the troubled retailer were placed in a trading halt as takeover talks with the Sycamore consortium, made up the retailer’s US-based executive Paul Naude and private equity firm Sycamore Partners, continued.

Sycamore Partners made a $287 million offer for the Australian retailer.