JB Hi Fi whose shares are down 2.4% for the past twelve months Vs a fall of 16% at archrival Harvey Norman is tipped to be a first-round bidder for the Jaycar business which is more retail stores than online and is estimated to be worth around $500M.

The Company that three years ago acquired The Good Guys is believed to be competing with Super Retail Group whose share value has fallen 22% during the last 12 months.

The final deal could be a cash and share deal for a business that is more house brand products than known brands.

ChannelNews understands that the business that sources products from China has been struggling to get stock of several products this year.

The sale follows the death of Gary Johnston who founded the company in 1981.

The company reported $315 million sales and a $172.9 million gross profit during the 2021 financial year.

First-round bids are due next week at investment bank Barrenjoey who have been hired to run the sale of the business

According to the Australian private equity firms including CPE Capital, BGH Capital, Quadrant Private Equity and Pacific Equity Partners are also tipped as bidders however ChannelNews has been told that at least two of these businesses are looking to get the business “On the cheap”.

Quadrant has looked at Jaycar in the past.

Jaycar, generates $60m of earnings before interest, tax, depreciation and amortisation, they have more than 110 stores across Australia and New Zealand as well as operations in the UK.