Specialty Fashion Group has confirmed a $135 million takeover has been halted.
The Group, owner of Katies and Millers, is subject to a takeover from investment company Al Alfia.
However the company, controlled by the Qatari royal family, has seen funding temporarily restricted in probate due to a family death.
The death of the sole shareholder's father, Sheikh Khalifa bin Hamad al-Thani, has thrown into doubt if Al Alfia can fund the acquisition.
"Due to the unforeseen circumstances relating to the death of the father of the sole shareholder of Al Alfia, the funding has been temporarily restricted in probate," Specialty Fashion said in a statement.
"Al Alfia has advised they are addressing the probate issue, however it has not been able to confirm when this will be resolved."
In revealing the acquisition halt, Specialty Fashion Group also reported a 37% rise in half year profit.
Net profit rose to $12 million in the six months to December 31.
Overall revenue fell 1% to $430 million in the half year, as same store sales dropped 2%.
An underlying profit at Rivers, which has been underperfoming since its acquisition in 2013, contributed to the overall profit growth.