The asset has attracted interest from private equity as well as manufacturers seeking to enter the leather-chemical industry, said sources, who declined to be identified because details are private. Rival suppliers BASF, Clariant and Lanxess are said not to be in the process.

Efforts to consolidate European suppliers of leather chemicals have been hampered by low valuations. BASF abandoned the sale of its leather and textile unit in March last year after offers fell short of the company’s valuation. Competition from low-cost producers in Asia is coinciding with a slowdown in demand in some markets. TFL may fetch bids of as much as $264 million Bloomberg report.

The deadline for submitting binding bids may slip to accommodate more recent entrants to the sale process who still need time to review the company and its debt situation.

TFL are being sold on behalf of creditors seeking debt repayments taken on under the ownership of private equity firm Odewald & Cie. Andreas Ziegenhagen is the trustee overseeing the sale, advised by Leonardo & Co. Odewald bought TFL, which has annual sales of about €240 million, from Permira Advisers in 2003 for an undisclosed price.

TFL posted good financial results for 2011 and have good lines of credit to operate the company while the sale process proceeds.