Magnet to shut 15 stores as the retailer battles rising costs

Kitchen retailer Magnet is set to close 15 underperforming stores as part of a major restructuring aimed at securing the company’s long-term future.

The retailer said the closures will form part of a Company Voluntary Arrangement (CVA) designed to tackle “unsustainable” property costs while protecting the majority of its 159-store estate.

Magnet has not revealed how many jobs are at risk, but said affected employees will receive support and, where possible, be offered alternative roles elsewhere in the business.

Chief executive Sophie Rose described the move as “a difficult decision” but insisted it was necessary to strengthen the business and return it to sustainable profitability.

The restructuring proposals will be overseen by advisers from Interpath and must still be approved by creditors before taking effect.

Customers whose local branch closes will have their orders transferred to the nearest remaining Magnet store, with the retailer stressing that most locations will continue trading as normal.

The move is the latest sign of pressure facing Britain’s retail sector as businesses grapple with higher operating costs and reassess the viability of physical store portfolios.

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.

“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.”