Written ByRobert Moore
Marketing Manager
Rob has over a decade of experience in web and general marketing. He has extensive knowledge of the Insolvency sector and has helped many worried directors with their questions.
Rob is now working with the Board at KSA Group Ltd to develop strategic marketing programmes to support the business plan and drive more company rescues.
Dobbies, the garden centre group, is looking to close 17 of its 77 stores before the end of the year, in order to address “historically uneconomical rent costs”.
The garden centre group is embarking on a restructuring plan expected to return Dobbies to “sustainable profitability” that impacts 465 staff (of which 82 work full-time).
11 unprofitable garden centres and all six of its ‘little Dobbies’ high street sites will shut, whilst the group looks to secure rent reductions at another nine sites.
Reports back in August indicated that FTI Consulting were advising them on a possible CVA
This would enable them to put pressure on landlords to reduce rents as a CVA can allow the company to exit premises if the CVA is approved. However, in subsequent statements it is clear that it has moved to a restructuring plan. Such a plan will include secured creditors as well whereas a CVA is only binding on unsecured creditors. A restructuring plan also has to be approved by a court.
Dobbies was established in 1865 and grew to employ 3,600 staff across the UK. It was acquired by Ares Management last year and reported a £105.2m pre-tax loss in the year to March 2023.
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.”
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
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