Dobbies is gearing up to close 17 out of its 77 stores, affecting 465 jobs, as the new ownership looks to restore profitability to the garden center chain. With a workforce of 3,600, Dobbies is seeking approval from creditors for a restructuring plan that involves significant rent reductions.
These closures, slated to be completed by the end of the year, will include 11 unprofitable large garden centers and all six smaller “Little Dobbies” locations in urban areas. Additionally, the company is aiming to negotiate lower rents at another nine sites.
This decision comes at a particularly tough time for garden centers. A cold and rainy spring has dampened sales during what is typically their peak season. Rising costs for essentials such as heating, rent, and mortgage payments have also compelled households to tighten their budgets, cutting back on discretionary spending for outdoor projects and expensive items like new garden furniture.
During the COVID-19 pandemic, garden centers experienced a surge in business as families turned to outdoor entertaining to maintain connections while practicing social distancing. However, that momentum has since slowed, causing financial strain for other retailers as well. For instance, DIY chain Homebase is currently seeking new ownership after selling off 10 sites to Sainsbury’s and reporting an £85 million loss last year.
Dobbies was acquired last year by Ares Management, and it reported a pre-tax loss of £105.2 million for the fiscal year ending in March 2023, a stark contrast to the £7 million loss experienced the previous year.
A company spokesperson stressed that the restructuring plan and other strategic initiatives are designed to guide Dobbies back to sustainable profitability through site consolidations and real cost savings, ultimately securing the company’s long-term viability while allowing for future investments. Post-restructuring, Dobbies intends to operate 60 stores, reinforcing its market presence and maintaining active engagement with stakeholders and the communities it serves.
Andrew Goodacre, CEO of the British Independent Retailers Association, commented that these closures underscore the difficult landscape retailers are navigating today. He highlighted the pressing need for governmental support, especially as the chancellor prepares for the autumn statement on October 30. “High streets and independent retailers need support now,” he emphasized.
The garden centers scheduled for closure this year include locations in Altrincham, Antrim, Gloucester, Gosforth, Harlestone Heath, Huntingdon, Inverness, King’s Lynn, Pennine, Reading, and Stratford-upon-Avon. The closing Little Dobbies stores are located in Cheltenham, Chiswick, Clifton, Richmond upon Thames, Stockbridge, and Westbourne Grove in London.
