Dobbies plans rent cuts amid store closures in UK

Dobbies Garden Centres, a major player in the UK garden retail sector, is undergoing a significant financial restructuring. This move comes as the company, owned by Ares Management, seeks to address challenges posed by underperforming stores and high rental costs. Dobbies has enlisted the help of FTI Consulting to devise a plan that may involve closing some of its 77 locations and negotiating rent reductions with landlords. The restructuring process is contentious, as it allows the company to impose financial adjustments on its creditors. The potential store closures could have a considerable impact on Dobbies' workforce, which numbers around 3,700 employees. While the exact number of closures has not been disclosed, the restructuring plan is seen as a necessary step to ensure the company's long-term viability. This initiative follows a previous debt reorganization that occurred 18 months ago when Ares Management took control of Dobbies. Historically, Dobbies has changed ownership several times, previously being under the control of Midlothian Capital Partners and Tesco. Each ownership transition has brought its own set of challenges, and the current restructuring reflects ongoing difficulties in the retail sector, particularly for garden centres. If the proposed restructuring plan fails to gain approval from creditors, Dobbies may face insolvency, highlighting the precarious nature of its financial situation. The company has not publicly commented on the restructuring efforts, leaving stakeholders and employees awaiting further developments.