Magnet has closed the first of 15 underperforming showrooms as it pushes ahead with a major restructuring of its store estate.
The retailer’s Caxton Way branch in Watford ceased trading on 14 July, with customers’ existing orders being transferred to its nearby stores in St Albans and Harrow.
Magnet said employees affected by the closure would be supported, with alternative roles offered elsewhere in the business wherever possible.
The Watford shutdown is the first of 15 planned closures announced by the kitchen specialist last month as part of a proposed company voluntary arrangement (CVA).
The insolvency process is designed to help Magnet negotiate with creditors and reduce property costs it has described as “no longer sustainable”, while allowing 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.
Magnet operates 159 stores across the UK, with the majority of its estate expected to continue trading as normal. The 15 closures represent just over nine per cent of its store network.
Alongside Watford, the retailer plans to shut showrooms in Andover, Birmingham Minworth, Blackburn, Bridgwater, Brighton, Colwyn Bay, Dorking, Farnborough, Ramsgate, Stirling, Stockton and Weymouth.
Its trade branches in Romford and York are also earmarked for closure.
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 added that removing the costs weighing on the business would allow Magnet to focus its investment on areas offering the greatest opportunities for growth.
“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,” Rose said.
Magnet said customers should continue to receive an uninterrupted service throughout the restructuring, with orders handled by the nearest alternative branch where a store is closed.
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