Dobbies to close 12 stores in December 2024 after restructuring plan approved

No comments

Dobbies has confirmed it will close several garden centres after its restructuring plans were approved.

Dobbies store exterior

Source: Dobbies

Dobbies said the restructuring plan is ‘expected to return it to sustainable profitability’

The retailer said it would be exiting the leases of 10 loss-making sites now that its plans had been approved by the Court of Session in Scotland.

Originally, Dobbies was set to close an eleventh site in Antrim, which will now remain open after it reached an agreement with landlords, and a further two sites in Morpeth and Stapleton will move to other garden centre operators.

According to a statement from the retailer, the move will “enable Dobbies to return to sustainable profitability, unlock access to future investment and deliver a strong and well-capitalised platform for the business going forwards”.

A Dobbies spokesperson said: “We’re pleased to have worked constructively with landlords on the restructuring plan. The approval of the [plan] 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. Thank you to all our colleagues, customers and suppliers who supported us during this process.”

It was revealed a few months ago that Dobbies had hit choppy waters financially when owner Ares Management appointed FTI Consulting to advise on a restructuring plan for the centres.

The retailer said: “The restructuring plan, and other strategic initiatives, are expected to return Dobbies to sustainable profitability through site rationalisations, rent reductions and other tangible cost savings – securing its long-term future and allowing access to future investment.”