Mendocino Farms, a TPG-backed fast-casual restaurant chain, has shelved its sale process due to unfavorable market conditions, according to two sources close to the situation.

North Point, which was advising on the process, is no longer working with Mendocino Farms, according to the first source. There are no plans to restart the sale process, this source said.

The Los Angeles-based sandwich and salads chain was expected to command more than USD 400m in a deal, according to a Reuters report on 19 September. At the time, Mendocino Farms generated annual EBITDA of more than USD 30m, the report said. It has opened new restaurant locations since that report.

In total, Mendocino Farms operates approximately 70 restaurants, 10 of which are new, the sources said. On average, the fast-casual chain’s restaurants each generate about USD 4m in revenue annually, they said.

Mendocino Farms was founded in 2005 by husband-and-wife team Ellen Chen and Mario Del Pero. Private equity house TPG acquired a majority stake in the company from L Catterton in 2017.

TPG declined to comment, while Mendocino Farms and North Point did not return messages.