Dobbies £48m in red

10 December 2015

dobbies Tesco’s garden centre chain, Dobbies, has dropped £48m into the red. This occurred after a writing down of the value of their stores.

Sales with the chain were actually up by 8% in the 53 weeks to 1st March, however, Dobbies plummeted into a huge loss from a pre-tax profit of £6.6m in the previous year, after booking £54.4m in impairments on assets, including stores.

Tesco are having an awful time at the moment, and Dobbies is just the latest of its divisions to book losses. Restaurant chain Giraffe, coffee vendors Harris + Hoole, and the health supplementers NutriCentre all said that they were in the red. Tesco themselves have seen money vanishing into black holes as well.

This all means that Tesco’s share price is taking a hit, and it hit a 15-year low this week.

If Tesco want to turn things around, it looks like they're going to have to start selling off a number of its businesses, including Dobbies. They've already sold off their Korean wing earlier in the year, and they tried to sell Dunnhumby, but no-one matched Tesco's valuation of the company that created the Clubcard scheme.

All the while, Lidl, Aldi, and Waitrose are taking Tesco's customers away from them. They need to act fast, or else.

TOPICS:   High Street News

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