Magnet Kitchens, a major UK kitchen retailer operating over 150 showrooms, has confirmed the closure of 15 stores across the country as part of an emergency rescue plan to stave off bankruptcy. The company has initiated a Company Voluntary Arrangement (CVA), an insolvency procedure that allows struggling but viable businesses to repay a portion of unsecured debts over a fixed period, typically three to five years, while continuing to trade.
Details of the CVA and Store Closures
The CVA proposals, overseen by restructuring experts Natasha Harbinson, Will Wright, and Chris Pole from advisory firm Interpath, require creditor approval before implementation. The closures target “underperforming” locations to reduce crippling property costs. Sophie Rose, chief executive of Magnet Group, described the decision as “difficult,” particularly where staff may be affected, but essential for the brand’s long-term health.
“Taking this action now is the right thing to do for the long-term health of Magnet Group,” Rose said. “It allows us to deal with property costs that are no longer sustainable and protect the stronger parts of our estate. I am confident these proposals will help Magnet Group build a stronger, more resilient business that is better placed to serve customers, support partners and return to sustainable profitability.”
Full List of Magnet Stores Closing
The 15 stores slated for closure are: Andover (Hampshire), Birmingham Minworth (West Midlands), Blackburn (Lancashire), Bridgwater (Somerset), Brighton (East Sussex), Colwyn Bay (Wales), Dorking (Surrey), Farnborough (Hampshire), Ramsgate (Kent), Romford Trade (Greater London), Stirling (Scotland), Stockton (County Durham), Watford (Hertfordshire), Weymouth (Dorset), and York Trade (North Yorkshire).
Impact and Future Outlook
The majority of Magnet’s 159 stores will continue operating normally, unaffected by the restructuring. The CVA protects the company from creditors’ legal action while directors retain control. This move follows a trend in UK retail where companies use CVAs to manage debt and avoid liquidation, as seen with other chains. The closures are expected to result in job losses, though the exact number has not been disclosed.
