French company Leroy Merlin, part of the Adeo Group is said to have considered buying Homebase.
Homebase owner Home Retail Group issued a profit warning before Christmas.
Former Wyevale Garden Centres chief executive Marshall has expressed interest in bidding for the retailer which he says is set to be sold.
Furniture seller Steinhoff International is also reported to be interested.
In October's half-year results, Home Retail issued a profit warning as it revealed like-for-like sales at Argos dropped 3.4 per cent and cautioned that it was uncertain how customers would respond to the upcoming 'Black Friday' sales event.