Cerberus Capital Management LP and Sycamore Partners are the two private equity firms actively exploring an acquisition of Staples Inc (SPLS.O), the U.S. office supplies retailer, people familiar with the matter said on Tuesday.

Staples has held talks with several private equity firms over the last few weeks about a potential deal, the sources said. Cerberus and Sycamore have emerged as the frontrunners, as other prospective buyers have become discouraged by the challenges Staples faces in shifting its business model from serving consumers to catering to companies, the sources added.

Clayton Dubilier & Rice LLC , Advent International Corp and Bain Capital LLC are among the private equity firms that have also held discussions with Staples but are now less actively pursuing a deal, according to the sources.

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