Mr Kipling cakes maker Premier Foods said it has decided against selling Ambrosia rice pudding and custards brand to cut debt of over £500m.
The company blamed a tough business climate that could have dented the deal value.
Ambrosia was put up for sale in November, when Gavin Darby, who led the company from 2013, stepped down.
He had come under pressure from an activist investor after failing to halt a share price slide since a proposed takeover by US food maker McCormick & Cofell through two years ago.
"The board has concluded that in the present business climate the process will not result in a satisfactory financial outcome. As a result, these discussions have now concluded," Premier Foods said in a statement.
The company's stock fell more than 22% in 2018. Up to yesterday's close, the shares have lost over a third of their value since McCormick abandoned its approach in April 2016.
The Oxo-cube maker said a number of parties had expressed interest in the business.
It said in November that talks to sell Ambrosia, which accounts for under 10% of its total revenue, were in early stages and it expected strong demand for the brand.
However, a company spokesman today declined to comment on the values on any offers made or who the interested parties were.
Premier Foods has been cutting costs as part of a two-year plan launched in 2017 by laying off people and streamlining its warehousing and distribution network.
Its plan to sell only Ambrosia were in contrast to activist hedge fund Oasis Management's demand to sell its Batchelors soup brands.
