Dobbies, a popular garden centre group, has announced plans to close 17 stores, putting 465 jobs at risk. The closures are part of a restructuring strategy aimed at returning the company to profitability and reducing rental expenses. The proposal includes shutting down 11 larger Dobbies sites and six Little Dobbies locations by the end of the year. Despite the impending closures, all sites will continue to operate normally until the restructuring process is finalised.
The group has indicated that 465 employees will be affected by the closures, with 82 being full-time workers out of the approximately 3,600-strong workforce. Dobbies also plans to collaborate with landlords to secure temporary rent reductions for nine additional stores. The company has assured that its suppliers will not be impacted by the restructuring.
Acquired by investment firm Ares Management last year, Dobbies reported a pre-tax loss of £105.2 million in the year ending March 2023, a significant increase from the £7 million loss the previous year. The company’s latest filed accounts highlight the need for strategic initiatives such as site rationalisations, rent reductions, and cost-saving measures to restore sustainable profitability and secure its long-term viability.
Dobbies intends to operate 60 stores following the restructuring, with a commitment to maintaining an active presence in the market, fostering positive relationships with stakeholders and suppliers, and actively engaging with local communities. The company aims to position itself for future investments and ensure a stable future for the business amid the challenging retail landscape.