Dobbies Announces Closure of 17 Stores Amid Restructuring Plans

Garden centre chain Dobbies has announced the closure of its Stratford branch, as part of a comprehensive restructuring plan aimed at addressing uneconomical rent costs. The Stratford store is among 11 sites set to shut down by the year’s end, impacting 465 jobs across the UK.

A spokesperson for Dobbies conveyed to the Herald, “We are implementing a restructuring plan to address historically uneconomical rent costs and to create a strong platform to return our business to profitability, ensuring a sustainable, long-term future for Dobbies.” The spokesperson further confirmed that the Stratford-upon-Avon store is slated to cease operations, pending approval of the plan, but will remain open until then.

The restructuring is a response to the company’s financial difficulties, with the targeted sites deemed unprofitable. In addition to the closures, Dobbies aims to negotiate rent reductions at nine other locations.

“The restructuring plan and other strategic initiatives are expected to return Dobbies to sustainable profitability through site rationalisations, rent reductions, and other tangible cost savings,” stated Dobbies in an official announcement. “This plan includes the closure of 11 unprofitable sites, as well as six unprofitable Little Dobbies sites, impacting 465 colleagues, of which 82 are full-time.”

Dobbies, which operates approximately 60 stores nationwide, is currently owned by Ares Management. The firm has been involved as a lender and shareholder since acquiring the business from Tesco in 2016.

The list of other stores facing closure includes Altrincham, Antrim, Gloucester, Gosforth, Harlestone Heath, Huntingdon, Inverness, King’s Lynn, Pennine, and Reading. Meanwhile, Dobbies’ Gloucester and Cheltenham sites have also been earmarked for closure, leaving Tewkesbury’s flagship store unaffected.

The restructuring plan underscores the company’s necessity to manage its financial burdens while securing its long-term future and potential for future investment. While negotiations for temporary rent reductions are underway at nine sites, all current operations will continue as normal until any closures are legally finalized.