Magnet Kitchens, the award-winning kitchen brand, has warned that further store closures are "inevitable" as it confirms the future of 39 showrooms will likely be decided "in the next few weeks."
The brand announced an extensive restructuring plan earlier this year, which saw the closure of 15 of its more than 150 showrooms across the UK, including its only branch in Stirling. Now an additional 39 are at risk, with the outcome depending on rent agreements.
Talks with landlords ongoing
Chief Executive Sophie Rose told The Times that the decision will likely be confirmed "in the next few weeks" as ongoing talks with landlords come to an end. As of writing, it has not been confirmed which branches could be affected, or whether the closures will result in any job losses.
There are currently 14 Magnet Kitchens showrooms across Scotland, meaning any could potentially be included in the next wave of closures.
Financial challenges and restructuring
Founded in 1918, Magnet Kitchens takes its name from founder Tom Duxbury's beloved horse Magnet. Now the UK's "longest-running kitchen manufacturer", it operates over 150 showrooms across the nation. The brand has become renowned for its range of custom-designed kitchens, primarily crafted at its Darlington factory.
However, the business has reportedly been hit with financial challenges recently. Sophie Rose confirmed that Magnet has faced difficulties with its larger stores, with higher rents and overheads making them unsustainable to run.
The high street retailer announced in June that it would close several "underperforming" locations as part of a company voluntary arrangement (CVA) restructuring process to help secure the group's finances. Alongside its only branch in Stirling, previously located on 16 Whitehouse Road, 14 additional branches were closed, all located south of the border in areas including Lancashire, Surrey, Kent, Greater London and Wales.
Natasha Harbinson, Will Wright and Chris Pole from advisory firm Interpath oversaw the process. At the time, Magnet Kitchens did not disclose how many workers would be affected, although it has now been reported that 30 percent have been redeployed, with other businesses offering exiting staff alternative roles.
Focus on smaller showrooms
Following the restructuring and axing of select larger stores, Sophie Rose said the brand can now focus on smaller showroom formats, telling The Times: "It's much more intimate. It's much more about having that kind of personal experience and feel when you come into the showroom. You know, it's got creative spaces, it's got kitchens on display. It's amazing how many kitchens you can get on display in these small showrooms."
Magnet Kitchens' warning of more closures comes amidst a turbulent time for the UK high street. Over the coming weeks, several family-friendly diners are officially set to disappear following a major restructuring plan. Whitbread PLC, owner of Beefeater and Brewers Fayre, has confirmed that all 18 restaurants across Scotland will be permanently shuttered starting from September 3, with customers told they now have less than a week to use any loyalty points.
The rehaul marks part of the owning group's decision to exit the food and drink business entirely, with venues being converted into additional Premier Inn rooms or sold off. The move will reportedly save £250 million, although it will result in 3,800 job losses.
