Struggling online retailer Adultshop may soon be de-listed following a purchase offer from adult store chain, Sexyland.

Sexyland, which has 11 bricks and mortar outlets in Melbourne in addition to an online retail site and party plan operation, has put forward a $5.2 million takeover bid, giving Adultshop stakeholders an opportunity to exit the underperforming retailer.

Adultshop was one of the first Australian online retailers in the late 1990s. Based in Perth, it is run by CEO Mal Day, who also holds a 15 per cent stake in the company.

When it was first listed on the Australian Stock Exchange (ASX) in 1999 it had a market capitalisation of $600 million, however, this has now dropped to just $3 million.

Last month Day told media it was not in the best interests of the company to remain listed on the ASX.

Sexyland founder Angelo Abela reminded shareholders in a statement that Adultshop had lost almost $8 million over the past five years. The Sexyland bid is said to close at the end of November.