Dec 10, 2024, 1:07 PM
Dec 10, 2024, 1:07 PM

Popular garden centre shuts down 12 nurseries amid restructuring controversy

Highlights
  • Dobbies has announced the closure of 12 branches as part of a restructuring plan approved by Scottish courts.
  • This decision follows the company’s significant pre-tax losses, indicating financial instability.
  • The restructuring is aimed at focusing on sustainable profitability for the remaining stores across the UK.
Story

In Scotland, Dobbies announced the closure of 12 of its garden centre branches as part of a court-approved restructuring plan. This decision comes after significant financial losses reported in the previous year, with pre-tax losses rising to £131 million compared to a £21 million loss the year prior. The restructuration process was publicized by the company after revealing a plan to close 17 stores by the end of the year, affecting nearly 500 employees. The restructuring aims to relinquish the leases of ten branches to other operators while two stores will transition into the hands of different garden centre operators, specifically in Morpeth and Stapleton. The restructuring plan was authorized by the Court of Session in Scotland. Little Dobbies stores, which were previously earmarked for closure, have already ceased operations. Dobbies noted that the approval of the restructuring plan allows the company to concentrate on achieving sustainable profitability across its remaining stores. The company is adapting to challenging external pressures, including unseasonable weather effects, the cost-of-living crisis, and economic challenges linked to the ongoing global events, including the Russian invasion of Ukraine. After a rich history since 1865, the brand remains committed to supporting its local communities, stakeholders, and suppliers during these transitions while planning for a more viable future.

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