Premier Motor Auctions is seeking a buyer to rescue the business from financial difficulties.
The Yorkshire auction house had been in talks with Manheim Auctions in recent weeks, however those negotiations ended last week with a sale not being agreed.
A Manheim spokesman said he understood that discussions continue between Premier and other potential buyers.
He said Manheim felt it would be a challenge for any organisation to acquire and integrate a business in the current climate, particularly one in financial difficulty.
The failure of Premier was "sad to see" but a reflection if the market's very challenging times," he added.