Kitchen giant with 150 UK showrooms to close 15 stores – full list | UK | News
A kitchen giant in the United Kingdom announced that it will close 15 stores across the country in order to avoid bankruptcy. Magnet Kitchens, which operates more than 150 showrooms across the UK, has launched an emergency rescue plan to cut crippling property costs by closing “underperforming” locations.
Magnet initiated a Company Voluntary Arrangement (CVA), an insolvency procedure in the UK. This procedure allows struggling but still viable companies to repay some of their unsecured debt within a fixed period of time (usually three to five years) to avoid bankruptcy. Unlike a liquidation, a CVA allows administrators to retain control while the business continues to trade and provides protection against legal action from creditors. In Magnet’s case, the CVA bids will be overseen by restructuring experts Natasha Harbinson, Will Wright and Chris Pole from consultancy Interpath; but these still need to be approved by creditors before they can proceed.
Sophie Rose, chief executive of Magnet Group, described the process as a “difficult decision”, especially considering staff could lose their jobs.
He said: “This is a difficult decision and not one we take lightly, especially where colleagues could be affected.”
But he insisted the move was necessary for the brand’s survival: “Taking this action now is the right thing to do for the long-term health of Magnet Group. It allows us to cope with property costs that are now unsustainable and preserve the stronger parts of our estate.”
“I am confident that these offerings will help Magnet Group build a stronger, more resilient business that is better positioned to serve customers, support partners and return to sustainable profitability.”
- Andover, Hampshire
- Birmingham Minworth, West Midlands
- Blackburn, Lancashire
- Bridgwater, Somerset
- Brighton, East Sussex
- Colwyn Bay, Wales
- Dorking, Surrey
- Farnborough, Hampshire
- Ramsgate, Kent
- Romford Trading, Greater London
- Stirling, Scotland
- Stockton, County Durham
- Watford, Hertfordshire
- Weymouth, Dorset
- York Trading, North Yorkshire
The majority of the brand’s 159 stores will not be affected by the restructuring and will continue to operate as normal.
