In a strategic move, Dobbies unveils a restructuring plan aimed at trimming unprofitable operations.
- The garden center will shutter 17 stores to address unsustainable rent costs and boost profitability.
- Impacted employees will number 465 out of a total workforce of 3,600, with 60 garden centers remaining.
- Negotiations for temporary rent reductions will be sought at nine additional sites during the process.
- Operations at all stores will proceed as usual while awaiting approval of the restructuring strategy.
Dobbies has initiated a significant restructuring plan to close 17 of its underperforming locations. This decision aims to tackle the issue of historically unsustainable rent expenses and pave the way for a return to sustainable profitability. The garden center chain will close 11 of its mainline sites alongside six ‘Little Dobbies’ outlets, all deemed financially unviable. The process will impact 465 staff members but will leave the company operating 60 garden centers across its network.
In an effort to mitigate financial losses, Dobbies will engage with landlords to negotiate temporary rent reductions at an additional nine sites. This move is part of a broader strategy initiated in August, where the retailer signaled the possibility of rent cuts and store closures as part of its financial overhaul. The stores that are slated for closure by the end of the year include locations in Altrincham, Antrim, Gloucester, and several other areas, pending the approval of the restructuring plan.
While the restructuring remains under evaluation, Dobbies assures that operations across all outlets will continue without disruption. Additionally, there will be no adverse effects on suppliers during this phase. This comprehensive measure underscores Dobbies’ commitment to ensuring long-term financial health and resilience in a challenging retail environment.
The restructuring plan reflects Dobbies’ proactive approach to securing a more sustainable financial future.
