All shares tendered in the offer would be returned to their holders, the Della Valle family said in a statement.
Tod's founder and chairman Diego Della Valle and his brother Andrea, through the vehicle DeVa Finance, had offered to buy out other investors in Tod's at 40 euros a share.
By the last day available for the offer, investors tendered Tod's shares accounting for a total of 4,134,358 shares, which would have taken the family's stake to just under 87%.
The buyout bid was the latest attempt to relaunch a company that, like other Italian brands, built their name on craftsmanship but has struggled to appeal to younger luxury shoppers in recent years.
That goal has not changed despite the offer not succeeding, the Della Valle family said.
"From tomorrow we will all work to achieve in the necessary timeframe the realisation of a project that we hope will be very successful," it said, adding the structural foundations of the group remained strong. In addition to the eponymous brand famous for its Gommino loafers, Tod's also owns the Fay and Hogan labels, as well as Roger Vivier, whose $800 a pair buckled shoes and successful relaunch have made it the group's crown jewel.
(Reporting by Agnieszka Flak, editing by Cristina Carlevaro and Jason Neelyebx)