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Reddy was offered the chance of a loan move to Blundell Park but opted on a loan deal with Sheffield Wednesday, a club he spent four months with last season.
"It is true that we tried to get Michael Reddy," Groves told Mariners Net. "But Michael had other interest from Sheffield Wednesday so he chose them instead.
"He was a player that we knew about, as well as some others."
This revelation comes in the same week it emerged Groves was chasing Rory Fallon before his move to Swindon. Groves' earlier words regarding no more budget remaining are looking increasingly untrue, at this moment in time.
One also wonders if Groves is hoping to offload a current striker in order to free wages for a new one.