The Court of Session in Scotland has approved Dobbies’ restructuring plan, leading to the closure of 12 stores.
- Dobbies plans to exit leases on 10 unprofitable sites, transferring two others to different garden centre operators.
- The restructuring will affect 465 employees but aims to secure future investment and profitability.
- Antrim’s flagship branch, initially marked for closure, will remain operational after landlord negotiations.
- Dobbies is focusing on building a sustainable, well-capitalised platform for future growth.
The Court of Session in Scotland has officially approved a restructuring plan for Dobbies, necessitating the closure of 12 of its stores. This move will primarily involve exiting the leases of 10 underperforming sites, while two additional locations will transition to other garden centre operators. This decision aims to streamline Dobbies’ operations amidst financial challenges.
The restructuring plan, which affects approximately 465 out of 3,600 employees, is part of a broader strategy to revitalise Dobbies’ profitability. The company is choosing to close stores identified as unprofitable, ensuring the sustainability of the remaining locations. By restructuring, Dobbies seeks to unlock avenues for future investment, aligning with its goal of creating a financially robust business model.
While closures are significant, there is positive news for the Antrim flagship store. Originally earmarked for shutdown, this location will stay open due to successful negotiations with the landlord. This outcome reflects Dobbies’ proactive approach in working collaboratively with stakeholders to secure favourable agreements.
A statement from a Dobbies’ spokesperson highlighted the constructive dialogue with landlords throughout the restructuring process. They expressed optimism about focusing on future growth and profitability. ‘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,’ the spokesperson stated.
Amid these strategic changes, Dobbies remains committed to its customers, employees, and suppliers, acknowledging their support during this transition. The firm’s current efforts aim to maintain a well-capitalised business platform, fortifying its market position and encouraging future expansion.
The court-approved restructuring signifies a pivotal step for Dobbies, aiming to transform financial challenges into new growth opportunities.
