Magnet proposes CVA with plans to close 15 underperforming stores
Magnet Group has announced proposals for a Company Voluntary Arrangement (CVA) as it grapples with historic property costs that are weighing on the business.
In a statement, Magnet said the move is aimed at strengthening the company and supporting its return to sustainable profitability.
Subscribe to TRBThe proposal centres on Magnet’s store estate and, if approved by creditors, will see the business work with landlords to address property costs that are no longer sustainable.
However, it also includes the closure of 15 underperforming stores. Magnet said staff affected by the closures will be supported and offered alternative roles within the business wherever possible.
The group said it has taken a number of steps to improve performance over the last few years, including reviewing its store estate, opening new small format stores, and closing certain sites. However, parts of its historic property estate continue to put pressure on the business.
Sophie Rose, chief executive of Magnet Group, 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.
“We have a strong brand, talented teams, successful customer relationships and a long-established manufacturing base that will continue to underpin the business for years to come. By removing costs that are holding us back, we can focus more of our time, energy and investment on the areas where we see the greatest opportunity.
“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.”
The 15 stores set for closure include:
Andover
Birmingham Minworth
Blackburn
Bridgwater
Brighton
Colwyn Bay
Dorking
Farnborough
Ramsgate
Romford Trade
Stirling
Stockton
Watford
Weymouth
York Trade
