Dobbies has announced the closure of 17 stores as part of a broader restructuring plan to tackle unsustainable rent expenses and enhance profitability.
- Eleven mainline and six Little Dobbies sites will cease operations, impacting 465 employees across these locations.
- The garden centre chain is negotiating temporary rent reductions at nine other sites to mitigate financial strain.
- Dobbies will maintain normal operations during the restructuring process, ensuring suppliers remain unaffected.
- The closures are expected to be finalised by year-end, dependent on regulatory approval of the plan.
Dobbies, a prominent gardening retailer, has made the difficult decision to close 17 of its stores as it seeks to rectify historically unmanageable rent costs and steer towards a path of sustainable profitability. The decision comes after careful consideration and planning initiated in August, indicating a proactive approach to financial restructuring. As part of this strategy, Dobbies plans to shutter 11 primary sites along with six ‘Little Dobbies’ outlets, which have been underperforming and hence, were deemed unsustainable.
This move will affect 465 of Dobbies’ workforce, which currently numbers 3,600. While these closures are necessary to address financial inefficiencies, Dobbies is also working to minimise the impact on its employees by communicating transparently throughout the process. Despite these changes, the retailer remains committed to preserving jobs where possible and continues to operate its 60 remaining garden centres efficiently.
In a bid to alleviate immediate financial pressures, Dobbies is actively engaging with landlords to negotiate temporary decreased rent at nine additional sites. This negotiation underscores the brand’s determination to stabilise its financial footing while avoiding further disruptions to its business operations. The company has confirmed that during this transitional phase, all stores will continue to function normally without any complications to its supply chain.
The timeline for the closures, subject to the necessary approvals, is set for completion by the end of the current year. This phased approach allows the business to orderly implement its restructuring plan, aiming for minimal disruption. Dobbies has assured all stakeholders, including suppliers, that their operations will remain unaffected throughout this period.
The restructuring plan signifies Dobbies’ commitment to restoring its financial health and sustainability amidst challenging market conditions.
