Kitchen retailer Magnet has announced the closure of 15 stores across the UK as part of a major restructuring effort. The company stated that the underperforming locations will be shut through a company voluntary arrangement (CVA) aimed at securing the group's financial health.
Details of the CVA
The proposed CVA is designed to address property costs that are no longer sustainable, according to the company. Magnet did not specify how many employees would be affected by the closures but assured that impacted staff will be supported and offered suitable alternative roles within the business wherever possible.
The majority of Magnet's 159 stores will remain unaffected and continue normal operations. The restructuring proposals, overseen by Natasha Harbinson, Will Wright, and Chris Pole from advisory firm Interpath, are subject to creditor approval.
CEO Statement
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. 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 would transfer any customer orders to the closest alternative store if their local site closes.
List of Stores Closing
- 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
