USA NEWS – Garden centre chain Dobbies has announced plans to close 17 of its 77 stores, impacting 465 jobs, as part of a restructuring initiative aimed at returning the company to profitability. The move comes as the company grapples with the challenges of a difficult retail landscape and rising costs.

The closures, which are expected to be completed by the end of the year, include 11 unprofitable large garden centres and all six of its “little Dobbies” high street sites. Additionally, Dobbies is seeking rent reductions at a further nine locations. The company said the restructuring plan is necessary to secure its long-term future and allow for future investment.

The decision to close stores comes amidst a challenging year for garden centres, with a cold, wet spring affecting trade and the rising cost of living prompting consumers to cut back on discretionary spending. While the pandemic provided a boost to the garden centre industry, the surge in spending on home and garden improvements has since stalled.

Dobbies was acquired by the investment firm Ares Management last year and reported a £105.2m pre-tax loss in the year to March 2023. The company believes that the restructuring plan, which includes site rationalizations, rent reductions, and other cost-saving measures, will help return it to profitability.

The closures have sparked concerns about job losses and the impact on local communities. Andrew Goodacre, the chief executive of the British Independent Retailers Association, has called on the government to provide support to struggling retailers, including high street businesses and independent retailers.

As Dobbies continues to navigate the challenging retail landscape, the company’s restructuring plan will be closely watched by industry observers and consumers alike. The outcome of these changes will determine the future of the garden centre chain and its ability to remain a competitive player in the market.