Dobbies eyes rent cuts in restructuring plan
Dobbies is working with advisers on a restructuring plan which could see the garden centre chain slash rents at some of its stores and close others entirely.
The retailer – which is owned by American investor Ares Management – has drafted in FTI Consulting to work on the restructuring plan, Sky News has reported.
It is unclear how many of its 77 stores the retailer plans to close under the proposed plans, however if these are not approved by Dobbies’ creditors an insolvency process would likely take place.
Theis comes after Dobbies reported losses of £130m in its latest annual results, a drop from a loss of £21.3m the year before. The retailer cited poor weather and high inflation for the decline in results.
Dobbies was previously owned by private equity investor Midlothian Capital Partners, before Ares Management took control of the retailer through a reorganisation of its debt.
Prior to that, the retailer was under Tesco’s ownership for almost a decade.