Magnet, the 200-showroom kitchen giant, is set to close 15 stores as part of a major restructuring. The company announced the proposed company voluntary arrangement (CVA) to address property costs that are no longer sustainable, aiming to secure the group's finances.
Proposed CVA Details
The proposals will be overseen by Natasha Harbinson, Will Wright, and Chris Pole from advisory firm Interpath, and are subject to creditor approval. Magnet stated the CVA is intended to address property costs that are no longer sustainable.
Magnet's History and Operations
Founded in 1918 by Tom Duxbury in Bingley, West Yorkshire, Magnet began as a firelighting business acquired in exchange for Duxbury's horse, named Magnet. After World War I, Duxbury expanded into Magnet Timber and Hardware Company, converting surplus ammunition boxes into furniture. By the late 1920s, the company diversified into retail joinery, mass-producing standard-sized wooden doors and window frames.
In 1936, Magnet Joinery Ltd went public. It opened factories in Grays (Essex) and Knaresborough to meet demand. By 1960, it opened its first direct-to-customer depot in Bingley, bypassing traditional merchants. The 1970s marked entry into kitchens with a manufacturing plant in Darlington, which remains the headquarters today.
In 1975, Magnet merged with Southern-Evans to form Magnet & Southerns, becoming a FTSE 100 founding member in 1984. First retail kitchen showrooms opened in 1985. A 1989 management buyout led to financial strain, resulting in creditor bank control. The company split into Magnet (retail) and Magnet Trade (trade) in 1990.
In 1994, Berisford bought the company. Swedish firm Nobia AB acquired Magnet for £134 million in 2001, modernizing showrooms and the Darlington factory. In early 2026, UK private equity firm Alteri Investors returned Magnet to British ownership. Today, Magnet operates nearly 200 showrooms across the UK.
Impact of Closures
The 15 store closures are part of the CVA to reduce costs and improve financial stability. The underperforming locations will be shut, though specific stores have not been named. The restructuring aims to secure the group's future amid challenging retail conditions.
