Kitchens chain Magnet to shut 15 stores as part of restructure

It is hoped the closures will improve the retailer’s financial position

Kitchens chain Magnet is to shut 15 stores as part of a major restructure. The company said it would close the “underperforming” locations as part of a company voluntary arrangement (CVA) aimed at helping secure the group’s finances.

The proposed CVA is intended to “address property costs that are no longer sustainable”, the company said.

Magnet did not disclose how many workers would be hit by the closures, but said affected staff “will be supported throughout and suitable alternative roles within the business will be offered wherever possible”.

The majority of the brand’s 159 stores will not be impacted by the restructuring and will continue to operate as normal.

The proposals, which will be overseen by Natasha Harbinson, Will Wright and Chris Pole from advisory firm Interpath, are subject to creditor approval.

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.”

Magnet said it would transfer any customer orders to the closest alternative store if their local site closes.

List of Magnet stores to shut

– 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