A director of one of Australia’s leading retail group’s claims that Woolworths is reviewing the potential acquisition of The Good Guys after being rejected by JB Hi Fi. The move comes as research shows that food and consumer electronics is booming during the economic downturn.
Both Companies have refused to comment.
The normally private Company run by the Melbourne based Muir family The Good Guys this week gave an exclusive interview to the Financial Review in a move that has been seen by one major retailer as “precursor” to trying to increase the value of the Company by talking for the first time about the growth that the Company has witnessed during the past few years.
During the interview with Financial Review journalist Neil Shoebridge it was revealed that the Good Guys is also reviewing the potential acquisition of troubled retail group Clive Peeters who recently called in KPMG to conduct an audit of the Company with to either selling the company or attracting additional investors.
The 91 store Good Guys group recently reported a 23% jump in sales to $1.6 billion. This puts them alongside JB Hi Fi as who is reporting a 28% lift in sales to $2.4 billion dollars.
“The story earlier this week was deliberate and did not happen by accident. The Muir family are very private and they really spilled their heart out on the performance of the group. We are told that Woolworth is interested in the group and that they are also looking a Clive Peeters as a potential acquisition” said a leading retailer who competes head on with the Good Guys in the consumer electronics market.
Last year Woolworths was rejected by the directors of JB Hi Fi when they tried to buy the consumer electronics group that is tipped to be on track to deliver growth in excess of 26% and an increase in profits in excess of 30%.
Andrew Muir the owner of the Good Guys told Shoebridge that “We’ve seen good growth in recent years and growth is good this year”.
Several calls to The Good Guys have not been returned.
