British kitchen chain puts 39 stores at risk as it warns more closures ‘inevitable’ – weeks after shutting 15 locations

A BRITISH kitchen chain has announced that 39 stores could be at risk of shutting down as it warns more closures are “inevitable”. The announcement comes swiftly after the recent shuttering of 15 UK locations earlier this year. Magnet has announced that 39 showrooms are at risk of closure following a restructuring earlier this year Credit: Alamy In June, Magnet axed 15 “underperforming” stores amid rising property costs Credit: Magnet Magnet has announced that more store closures are “inevitable” following the restructuring, with 39 showrooms currently at risk. The company’s chief executive, Sophie Rose, told The Times that the fate of the 39 stores will likely be confirmed “in the next few weeks” as ongoing negotiations with landlords come to an end. Sign up for the Money newsletter Thank you! The possible closures follow a recent shake-up of the company earlier this summer. In June, the kitchen retailer, which has more than 150 UK showrooms, launched a Company Voluntary Arrangement (CVA) and axed 15 “underperforming” branches in the restructuring. The company cited crippling property costs that were “no longer sustainable”, and said the CVA would allow the retailer to “protect the stronger parts of our estate”. A further 39 stores have now been earmarked for closure, however at this point, there is no confirmation surrounding the number of stores expected to shut down, nor the number of jobs that may be lost as a result. Magnet has redeployed around 30 per cent of its staff following the restructuring, with other businesses offering alternative roles for exiting staff. Rose confirmed Magnet faced difficulties with its larger stores, with costly rent and overheads making the bigger branches unsustainable to run. Most read in Money Looking forward, she will be aiming to focus on smaller showroom formats instead. “It’s much more intimate,” she told The Times. “It’s much more about having that kind of personal experience and feel when you come into the showroom. “You know, it’s got creative spaces, it’s got kitchens on display. “It’s amazing how many kitchens you can get on display in these small showrooms.” Comment now