Dobbies likely to seek rent cuts as restructuring advisers drafted in

Dobbies, which is controlled by Ares Management, has appointed FTI Consulting to advise on a restructuring plan, Sky News has reported.

Such schemes have frequently been used by retailers to shutter underperforming shops and win rent concessions from landlords.

Dobbies has 77 branches and employs 3,700 people. It was unclear what the impact on employees might be.

However, if restructuring proposals do not win the backing of Dobbies’ creditors, it is thought that some sort of insolvency process would result.

Before Ares took control a year and a half ago, Dobbies was held by private equity house Midlothian Capital Partners. Prior to that, it was owned by grocery giant Tesco.