Dobbies To Restructure; Plans Store Closures

Dobbies has published its restructuring plan that involves the closing of 11 sites and impacts 465 colleagues.  The aim is to ensure a return to sustainable profitability. 

The plan has been put together by FTI Consulting with Dobbies' shareholder, Ares, and Dobbies. 

As well as closing 11 unprofitable sites, Dobbies will be seeking temporary rent reductions on a further 9 sites.

Dobbies has not been put into administration, but the restructuring plan must be agreed by the landlords and ratified by a court.  The announcement says there will be no impact on suppliers.

The Dobbies announcement reads

Dobbies Garden Centres Limited (“Dobbies”) has today initiated a restructuring plan (RP) to address historically uneconomical rent costs and ensure a return to sustainable profitability. 

The RP, 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.

The RP includes the closure of 11 unprofitable sites, and 6 unprofitable little dobbies sites, and impacts 465 colleagues, of which 82 are full-time (out of a total ~3,600 overall). Dobbies will also be working with landlords to seek temporary rent reductions at a further nine sites.

While the process is ongoing, all sites will continue to operate as normal.

There will be no impact to suppliers.

Subject to the RP being successfully approved, we expect the affected sites to cease trading by the end of the year. Thereafter, Dobbies will operate 60 stores and continue to play a key role in the market, working constructively with stakeholders and suppliers, and having an active and committed role in the communities in which it’s based.

The proposed store closures are:

• Altrincham
• Antrim
• Gloucester
• Gosforth
• Harlestone Heath
• Huntingdon
• Inverness
• King’s Lynn
• Pennine
• Reading
• Stratford-upon-Avon
• Cheltenham (little dobbies)
• Chiswick (little dobbies)
• Clifton (little dobbies)
• Richmond (little dobbies)
• Stockbridge (little dobbies)
• Westbourne Grove (little dobbies)

Source : Reproduced with permission from George Bullivant at GardenForum

Image : (c) Stewart Attwood Photography

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