Owned by American investment firm Ares Management, Dobbies and advisers from FTI Consulting have been working on a restructuring plan as the company faces substantial losses. In the company’s latest annual results, Dobbies reported losses reaching £130 million, an increase from the £21.3 million loss on the previous year. Disappointing trading is being attributed to the challenging market conditions, erratic weather and high inflation.
The garden centre chain has now announced 17 site closures as part of a restructuring plan that will see 465 employees face redundancy. According to Dobbies, the restructuring plan will address the “historically uneconomical rent costs and ensure a return to sustainable profitability”.
The closures impact 11 Dobbies Garden Centres and all 6 Little Dobbies stores – an urban format launched in 2020. The stores are expected to close at the end of the year, leaving the chain with 60 stores. Reportedly, while the process is ongoing, all stores will continue to operate as normal and there will be no impact to suppliers.
The proposed store closures are:
Dobbies
- Altrincham
- Antrim
- Gloucester
- Gosforth
- Harlestone Heath
- Huntingdon
- Inverness
- King’s Lynn
- Pennine
- Reading
- Stratford-upon-Avon
Litte Dobbies
- Cheltenham
- Chiswick
- Clifton
- Richmond
- Stockbridge
- Westbourne Grove