Major retailer confirms 12 branches will close for good before Christmas 

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A MAJOR retailer will shut 12 of its sites for good before Christmas.

Dobbies Garden Centre announced back in September that it would axe a number of its locations as part of a major restructuring plan.

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Dobbies is closing 12 sites before Christmas[/caption]

However, the process needed to be approved by the courts with bosses given the green light yesterday to go ahead with the closures.

A total of 10 sites will now shut, with an eleventh site in Antrim originally earmarked for closure saved.

It added that discussions with landlords over rent reductions meant that two additional garden centres in Morpeth and Stapleton would be moved to other garden centre operators.

In a statement, the firm said the move will enable Dobbies to return to “sustainable profitability and unlock access to “future investment”.

A Dobbies spokesperson added: "We're pleased to have worked constructively with landlords on the Restructuring Plan (RP).

“The approval of the RP means we can now be focused on the future, building a strong platform for a return to sustainable profitability in our stores across the UK. “

“Thank you to all our colleagues, customers and suppliers who supported us during this process."

Last month the firm shut six of its smaller format Little Dobbes locations.

These included:

  • Little Dobbies – Bristol
  • Little Dobbies – Richmond
  • Little Dobbies – Cheltenham
  • Little Dobbies – Edinburgh Stockbridge
  • Little Dobbies – Chiswick
  • Little Dobbies – Westbourne Grove

Now come December, the following 10 locations will shut for good, according to a number of reports:

  • Altrincham – December 17
  • Gloucester – December 15
  • Gosforth – December 19
  • Harlestone Heath – December 17
  • Huntingdon TBC
  • Inverness on December 23
  • King's Lynn – December 15
  • Pennine – December 15
  • Reading – December 23
  • Stratford-upon-Avon on – December 23

Dobbies will continue to operate around 60 stores across the UK.

TROUBLE FOR DIY AND GARDEN STORES

High inflation coupled with a squeeze on consumers’ finances has meant people have less money to spend in the shops.

Garden centres and home improvement businesses also boomed during the pandemic when customers were stuck at home.

But customers have been forced to cut back on spending since due to high inflation and a national cash crunch.

This has led to prominent chains going bust.

Late last month, Homebase said it would put 74 sites up for sale after it crashed into administration.

However, its administrators were able to strike a deal to sell the business to retail group CDS, which owns bargain chains The Range and Wilko.

This secured the jobs of 1,600 employees and 70 stores – all of which are set to be rebranded as The Range shops.

Why are retailers closing stores?

RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.

High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.

The high street has seen a whole raft of closures over the past year, and more are coming.

The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.

Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.

It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.

The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.

Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.

“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.

“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”

Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.

The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.

However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.

The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.

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