Dobbies will close 12 stores following a court-approved restructuring plan, aiming for sustainable profitability.
- The restructuring involves exiting leases of 10 loss-making sites and transferring two sites to other operators.
- Antrim’s flagship store will remain open due to a new agreement with the landlord.
- Originally, 17 unprofitable stores were set for closure, affecting 465 employees out of 3,600.
- Dobbies’ strategic initiatives aim to unlock future investments and strengthen the business platform.
Dobbies, the prominent garden centre chain, has announced the closure of 12 stores as part of a restructuring plan approved by the Court of Session in Scotland. This decision is a strategic move to enable a return to sustainable profitability by shedding loss-making locations. The plan includes exiting the leases of 10 sites that are not performing financially while two other sites, located in Morpeth and Stapleton, are set to transition to other garden centre operators.
Despite the closures, Dobbies’ flagship store in Antrim, which was on the initial closure list, will remain operational following negotiations that led to a favourable agreement with the landlord.
The company had earlier indicated the potential closure of 17 stores, including both large Dobbies locations and smaller Little Dobbies outlets, which would have impacted 465 employees out of a total workforce of 3,600. This significant restructuring is part of a broader set of strategic initiatives aimed at stabilising the business. A spokesperson for Dobbies remarked on the constructive efforts made with landlords under the Restructuring Plan, highlighting that the focus is now on the future and building a robust platform for profitability across its UK stores.
This restructuring and strategic focus are intended to pave the way for future investments, enhancing the financial health and capital strength of the business moving forward. It is a critical step in ensuring that Dobbies remains a key player in the UK garden centre market.
Dobbies’ restructuring plan, highlighted by strategic store closures, is geared towards achieving long-term profitability and investment capacity.
