Dobbies, the UK’s largest garden centre chain, has revealed plans to close 17 of its sites by year-end – including one in Bristol. The company has identified these stores as “unprofitable stores” and their closure forms part of a new restructuring strategy.
If approved, the plan will result in the closure of 11 mainline sites and six “little Dobbies” stores. In Bristol, the ‘little Dobbies’ branch in Whiteladies Road has been listed as one of the stores to shut.
Dobbies is not entering administration, and the restructuring plan requires approval from landlords and court ratification, reports the Mirror. Such schemes are commonly employed by retailers to close underperforming shops and negotiate rent concessions with landlords.
The plan was devised by FTI Consulting, in collaboration with Dobbies’ shareholder, Ares, and Dobbies itself. The proposed closures will impact 465 employees – including 82 full-time staff – out of Dobbies’ total workforce of 3,600.
Following the closures, Dobbies will operate 60 garden centres across the UK. The retailer also plans to negotiate temporary rent reductions at an additional nine sites. While the closure process is underway, all Dobbies stores will continue normal operations.
The company has assured that there will be no impact on its suppliers, and that the plans is aimed at “addressing historically uneconomical rent costs and ensuring a return to sustainable profitability”.
Following the initiation of a financial overhaul in August, Dobbies has warned of impending rent cuts and store closures. The company, which was established by James Dobbie in Renfrew, Scotland in 1865, reported significant losses of £130million in its most recent annual results, adding to the £21.3million losses it declared the previous year.
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Unseasonable weather and high inflation were cited as reasons for these shortfalls. The restructuring plan is being prepared 18 months after American investment management firm Ares took over from Midlothian Capital Partners. Before this, Tesco, the UK’s largest retailer, owned the company for nearly ten years.
In a statement, Dobbies said: “The restructuring programme 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.”
David Robinson, former boss of Pets at Home, was appointed as the new CEO last July. He succeeded Graeme Jenkins, who left after seven years to “pursue other opportunities”.
Dobbies stores set to close
- Altrincham
- Antrim
- Gloucester
- Gosforth
- Harlestone Heath
- Huntingdon
- Inverness
- King’s Lynn
- Pennine
- Reading
- Stratford-upon-Avon
Little Dobbies
- Cheltenham
- Chiswick
- Clifton
- Richmond
- Stockbridge
- Westbourne Grove