Dobbies has been granted approval for a restructuring plan by the Court of Session in Scotland, allowing for the closure of 12 stores.
- The garden centre chain will exit leases on 10 sites that are not profitable, with Morpeth and Stapleton locations transitioning to other operators.
- Despite earlier plans, the Antrim flagship will continue to operate due to a landlord agreement.
- Initially, 17 unprofitable stores, including 11 mainline and 6 Little Dobbies, were set for closure, affecting 465 staff.
- The restructuring aims to enable future investment and sustainable profitability for Dobbies.
Dobbies, the well-known garden centre chain, has confirmed that it will close 12 of its stores following the approval of a restructuring plan by the Court of Session in Scotland. This decision is part of a strategic move to address financial challenges by exiting the leases of 10 unprofitable sites. The company is poised to transfer two additional sites in Morpeth and Stapleton to other garden centre operators, marking a significant shift in its operational strategy.
In a surprising turn, Dobbies has announced that its flagship store in Antrim will remain open. This change in plan was made possible through successful negotiations with the landlord, allowing the store to continue serving its local community.
Previously, the company had disclosed intentions to close 17 stores, which included 11 mainline locations and 6 Little Dobbies shops. This move was projected to impact approximately 465 of the company’s 3,600 workers, a reflection of the wider challenges facing the retail sector.
The restructuring plan is a key part of Dobbies’ broader strategy to return to sustainable profitability. In a statement, a spokesperson for Dobbies mentioned: ‘We’re pleased to have worked constructively with landlords on the Restructuring Plan (RP). The approval of the RP means we can now be focused on the future, building a strong platform for a return to sustainable profitability in our stores across the UK.’
This announcement by Dobbies highlights a proactive approach to securing a stable financial future and demonstrates a commitment to fostering long-term growth. By undertaking these changes, the company aims to unlock new investment opportunities and establish a robust, well-capitalised foundation for the years ahead.
Dobbies’ strategic closures and restructuring efforts reflect its commitment to achieving long-term profitability and operational efficiency.
