A restructuring initiative by Dobbies aims to tackle uneconomic rent issues and restore profitability.
- 17 unprofitable stores, including 11 mainline sites and 6 smaller outlets, are set to close.
- The restructuring will affect 465 employees but leaves 60 garden centres operational.
- Dobbies seeks temporary rent reductions at nine additional sites while normal operations continue.
- The plan, in motion since August, predicts closures by year-end, subject to approvals.
In a bid to combat persistent rent inefficiencies, Dobbies has announced a comprehensive restructuring plan. The strategic move is poised to address economic challenges by closing down 17 unprofitable stores, aiming to steer the company back towards sustainable profitability. Of these, 11 are primary garden centre sites, while 6 are ‘Little Dobbies’ outlets—all deemed financially unsustainable.
The proposed closures will impact 465 of the company’s 3,600 employees, resulting in a significant yet necessary contraction of operations. However, Dobbies will retain 60 operational garden centres, continuing to serve its customer base across various locations.
While the physical store closures represent a substantial shift, the company plans to collaborate with landlords to obtain temporary rent reductions at nine additional sites. This strategic negotiation is part of an attempt to foster a more viable economic environment for the business.
Throughout this transitional phase, Dobbies assures that all stores will maintain normal operations, with no anticipated disruption to supplier relations. The restructuring plan, initiated in August, anticipates all proposed closures to be completed by the end of the current year, pending necessary approvals.
Dobbies’ restructuring strategy is a significant step towards revitalising its financial health amidst challenging economic conditions.