Kitchens supplier and retailer Magnet has announced the closure of 15 stores as part of a major restructuring via a company voluntary arrangement (CVA). The company stated that the underperforming locations will be shut to help secure the group's finances, addressing property costs that are no longer sustainable.
Details of the CVA Restructuring
The proposed CVA is intended to tackle unsustainable property costs, according to Magnet. The majority of the brand's 159 stores will not be impacted and will continue normal operations. The closures will affect stores in locations including Andover, Birmingham Minworth, Blackburn, Bridgwater, Brighton, Colwyn Bay, Dorking, Farnborough, Ramsgate, Romford Trade, Stirling, Stockton, Watford, Weymouth, and York Trade.
Impact on Staff and Customers
Magnet did not disclose the number of workers affected but said affected staff will be supported and offered suitable alternative roles within the business wherever possible. Customer orders from closing stores will be transferred to the nearest alternative location.
Sophie Rose, chief executive of Magnet Group, commented: "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."
Creditor Approval and Future Outlook
The proposals, overseen by Natasha Harbinson, Will Wright and Chris Pole from advisory firm Interpath, are subject to creditor approval. Rose expressed confidence that the restructuring will help Magnet Group build a stronger, more resilient business better placed to serve customers, support partners, and return to sustainable profitability.
