One of Britain’s biggest garden centre operators is plotting a far-reaching financial overhaul which could pave the way for store closures and steep rent cuts.

Sky News has learnt that Dobbies Garden Centres, which is controlled by the major American investor Ares Management, is working with advisers on a restructuring plan – a contentious mechanism which enables its sponsor to impose financial haircuts on its creditors.

City sources said FTI Consulting had been drafted in to work on the restructuring.

A formal court process such as a restructuring plan is typically used by retailers as a way to close underperforming stores and impose rent haircuts on landlords.

It was unclear on Thursday how many of its 77 sites Dobbies planned to close or the potential impact on its 3,700-strong workforce.

If the proposals are not approved by creditors, an insolvency process of some kind is likely.

The preparation of a restructuring plan comes 18 months after Ares took control through a separate reorganisation of its debt.

Dobbies had previously been owned by Midlothian Capital Partners, a private equity investor.

Prior to that, it spent almost a decade under the ownership of Tesco, Britain’s biggest retailer.

The company was founded by James Dobbie in 1865.

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Dobbies did not respond to a request for comment, while Ares has been contacted for comment and FTI declined to comment.