Dobbies MD Andy King is understood to be in dialogue with equity investors in the queue to buy the 35-centre group from parent company Tesco.

Insider sources believe there could be up to seven bids in the next stage of the process.

Wyevale Garden Centres is understood to be the only garden centre group allowed through to the next round by investment bank Greenhill & Co, appointed by Tesco to handle the sell-off. All the others are thought to be equity investors. 

“Wyevale’s owners [Terra Firma] are the only garden centre business likely to have the cash Tesco wants,” GTN Xtra was told by an industry observer on Friday. 

Terra Firm, led by Guy Hands (right), is now believed to want to float WGC on the stock market at an early juncture, but the 153-centre business might not be big enough for an IPO (Initial Public Offering) without the £160m of turnover Dobbies would add overnight.