Dobbies has initiated a restructuring plan to enhance profitability and reduce rental costs.
- The plan includes closing 17 unprofitable stores, impacting 465 out of 3,600 employees.
- Dobbies aims to collaborate with landlords for temporary rent reductions at nine additional sites.
- All stores will remain operational during the transition, with no supplier impact anticipated.
- The closures are expected by year’s end, contingent on restructuring approval.
Dobbies has announced a restructuring strategy aiming to tackle historically uneconomical rent costs and secure sustainable profitability. This move will result in the closure of 17 unprofitable stores, including 11 mainline garden centres and six ‘Little Dobbies’ outlets. These closures will affect 465 employees and are part of a broader plan to refine Dobbies’ operations.
The company remains committed to working with landlords across nine other locations to seek temporary reductions in rent. This approach is expected to alleviate some financial pressures while continuing operations at these sites.
Despite the transitions resulting from the restructuring plan, Dobbies assured stakeholders that all stores will continue regular operations without affecting suppliers. The company anticipates all 17 designated stores will cease trading by the end of the year, contingent upon the successful approval of the restructuring plan.
In August, Dobbies warned of impending financial adjustments that could involve rent reductions and store closures. This forward-looking statement has now materialised into concrete action, reflecting the company’s proactive measures to address fiscal challenges head-on.
Dobbies’ strategic closures aim to stabilise the business by addressing key financial inefficiencies while maintaining ongoing operations.
