Dobbies Garden Centres has confirmed it will be closing 17 stores across the UK, leading to downsizing within the company.

Specifically, the brand will shut down 11 of its larger main sites and six of its Little Dobbies stores spread across the UK, with shops expected to cease operations by the end of the year.

The garden centre brand, which currently employs approximately 4,000 people, stated that the move is part of its newly launched restructuring plan aimed at “addressing historically uneconomical rent costs and ensuring a return to sustainable profitability.”

According to Retail Gazette, the shop closures could result in the lay-off of around 465 employees.

The plan calls for 60 garden centres to remain open, while the retailer will seek to reduce rents at nine other sites. The company said this, along with ‘other tangible cost savings’, will help secure ‘its long-term future... enabling access to future investment’.

Sky News reported that Dobbies Garden Centres, which is owned by American private equity investor Ares Management, is currently working with advisers, including FTI Consulting, on a ‘restructuring plan’ after facing increasing difficulties last year.

In 2023, the chain reported losses of up to £130 million, caused by high inflation and unseasonable weather that hampered sales, a sharp decline from the £21.3 million loss in 2022.

Headwinds were also exacerbated by an unsuccessful refinancing of debt structures, which resulted in short-term liquidity preservation measures, such as discounting inventory and reduced purchasing, which in turn affected product availability.

Ares Management acquired Dobbies Garden Centres in February 2023 from Midlothian Capital Partners and Tesco.

The private equity firm stated at the time that its funds “have been lenders and shareholders since the business was acquired from Tesco in 2016. With the support of Ares’ funds, we will continue to execute on our strategy to drive the long-term growth of Dobbies.”

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