Garden centre chain Dobbies to shut 17 stores as part of restructuring plan

Dobbies is planning to shut 17 of its 77 stores, affecting 465 jobs, as its new owners try to return the garden centre group to profitability.

The company, which employs 3,600 workers, said it was seeking the approval of creditors for a restructuring plan that would reduce its rent bill.

The closures by the end of the year include 11 unprofitable large garden centres and all six of its “little Dobbies” high street sites, while the company said it was seeking rent reductions at a further nine sites.

The changes come amid a difficult year for garden centres with a cold, wet spring affecting trade at what is usually the busiest time of the year.

The high cost of essentials, including heating bills, rents and mortgages, has also prompted households to rein in spending on treats and expensive items such as new fences, patios or garden furniture.

Garden centres enjoyed a boom during the Covid pandemic when entertaining alfresco helped families and friends stay in touch while socially distancing to avoid infection.

However, the surge in spending on homes and gardens has stalled, putting pressure on other chains including the DIY group Homebase, which is searching for a new owner after selling off 10 sites to Sainsbury’s after falling £85m into the red last year.

Dobbies was bought last year by the investment firm Ares Management and fell to a £105.2m pre-tax loss in the year to March 2023, against a £7m loss a year earlier, according to its most recently filed accounts.

The company 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.”

Andrew Goodacre, the chief executive of the British Independent Retailers Association, said the closures showed “the stark reality of how difficult it is for retailers at the moment”, adding: “There is also a strong message for the chancellor as she prepares for the autumn statement on 30 October – high streets and independent retailers need support now.”

The garden centres closing this year

Altrincham
Antrim
Gloucester
Gosforth
Harlestone Heath
Huntingdon
Inverness
King’s Lynn
Pennine
Reading
Stratford-upon-Avon

The Little Dobbies high street stores closing

Cheltenham
Chiswick
Clifton
Richmond upon Thames
Stockbridge
Westbourne Grove, London