Australian surf and skatewear retailer Billabong International has released a statement saying that takeover talks are still ongoing with TPG Capital, after an Australian newspaper reported the private equity firm was considering pulling out.

"TPG has confirmed it has not withdrawn from the sale process," Billabong said in a statement, adding that as part of due diligence investigations, "TPG and its advisers have expressed concerns in relation to some issues."

The retailer again stressed "there is no guarantee that any transaction will eventuate out of the process."

Last month an unnamed party - rumoured to have been Bain Capital - withdrew from the sale process, leaving US-based TPG as the only firm still considering a possible takeover bid. It offered A$1.45 per share for the surfwear firm in July.