UK kitchen giant closes 15 stores as major restructure begins – full list

A major UK kitchen company is closing down 15 of its sites as part of its restructuring programme. Magnet Kitchens operates 159 showrooms across the UK and has confirmed it will axe 15 of them as part of a proposed company voluntary arrangement (CVA). The insolvency process aims to help Magnet negotiate with creditors and reduce property costs that are “no longer sustainable”, while permitting the wider business to continue trading.

The proposals remain subject to creditor approval and are being overseen by Natasha Harbinson, Will Wright and Chris Pole from restructuring firm Interpath, Retail Gazette reports.

Magnet has already closed the first of the 15. Its Watford branch, located at Caxton Way, shut on July 14, with existing orders being transferred to its nearby stores in St Albans and Harrow.

The retailer said impacted staff would be supported with alternative roles offered elsewhere in the business wherever possible.

Magnet chief executive Sophie Rose 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.”

She explained that removing the weighing costs from the business would allow it to focus its investment on other areas offering the greatest opportunities for growth and to improve profits.

Ms Rose continued: “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 has reassured customers that they will continue to receive uninterrupted service during the restructuring. Orders from closed showrooms will be handled by the nearest alternative branch.