Garden centre chain, Dobbies, has announced it will close 17 of its 77 stores as its new owners look to return the group to profitability.
The company said it is seeking the approval of creditors for a restructuring plan designed to reduce its rent bill. The closures are planned by the end of 2024 and will include 11 large centres and all six of its Little Dobbies sites.
Dobbies was bought last year by Ares Management investment company. The group fell to a £105.2m pre-tax loss in the year ending March 2023, compared to a £7m loss the previous year.
Dobbies said: “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, securing its long-term future and allowing access to future investment.
“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.”
