Kitchen retailer Magnet is to close 15 of its stores across the UK as part of a significant restructuring effort. The company stated that the closures of these 'underperforming' locations are necessary under a company voluntary arrangement (CVA) process, designed to bolster the group's financial stability.
Details of the CVA
The proposed CVA aims to 'address property costs that are no longer sustainable', according to the firm. While Magnet did not specify the number of employees affected by the closures, it said that impacted staff 'will be supported throughout and suitable alternative roles within the business will be offered wherever possible'. The majority of Magnet's 159 stores are expected to remain operational and unaffected by the restructuring. The proposals, which will be overseen by Natasha Harbinson, Will Wright, and Chris Pole from advisory firm Interpath, are contingent on creditor approval.
CEO Statement
Sophie Rose, chief executive of Magnet Group, said: 'This is a difficult decision and not one we have taken lightly, particularly where colleagues may be impacted. But taking this action now is the right thing to do for the long-term health of Magnet Group. 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.'
Customer Impact
Magnet said it will transfer any customer orders to the closest alternative store if their local site closes.
Full List of Closing Stores
- 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
- York Trade, North Yorkshire
