Garden centre multiple 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 2024and 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 commented: “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.”
The closure will impact on 465 of the company’s 3,600 employees.
BIRA has expressed deep concern over the significant store closures by Dobbies, as well as Boots, highlighting the urgent need for government support for high streets and independent retailers.
The Association points to these closures as evidence of the challenging retail environment. Boots, a stalwart of British high streets since 1849, has revealed plans to close almost 300 UK stores, with more shuttering in the coming weeks. This is part of a larger plan by parent company Walgreens Boots Alliance to close 650 outlets, aiming to save £618 million.
These announcements come in the wake of a recent PwC high street report, which revealed that net closures for 2024 stand at 12 per day, resulting in 2,284 fewer outlets on high streets, shopping centres, and out-of-town locations in the first six months of the year.
Andrew Goodacre, ceo of BIRA, said: “The recent high street report from PwC showed that there are 12 businesses closing on the UK’s high streets daily. All these announcements show the stark reality of how difficult it is for retailers at the moment. 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.
“Consumer confidence and footfall remain low, and the impact on the retail sector, especially for smaller independents, is severe. Recent figures show deflation in the non-food sectors, a sure sign of large chains discounting more and for longer. All this means that the current retail, hospitality and leisure rates relief must be retained at 75%. Any increases in the cost of running these businesses will restrict growth, result in more closures and a loss of jobs.”
BIRA urges the government to consider these closures and the broader retail landscape as it prepares for the upcoming Autumn Statement, emphasising the critical need for continued support for high streets and independent retailers across the UK.
Top: Dobbies will close 17 stores by the end of the year.
