A well-known British kitchen retailer is warning that dozens more of its showrooms could disappear from high streets across the country.
The future of those branches is expected to become clear within weeks.
Magnet Kitchens has identified 39 stores that are at risk of shutting their doors, with chief executive Sophie Rose telling The Times that further closures are “inevitable”.
Ms Rose said the fate of the affected showrooms will likely be confirmed “in the next few weeks” as talks with landlords reach their conclusion.
The announcement follows a turbulent period for the chain, which underwent a significant restructuring earlier this summer.
In June, the retailer launched a Company Voluntary Arrangement, closing 15 branches it deemed to be underperforming.
The chain, which operates more than 150 showrooms across the UK, pointed to property costs that had become “no longer sustainable” as the driving force behind the cuts.
The CVA was designed to safeguard the healthier parts of Magnet’s portfolio. However, a further 39 locations have since been flagged as potentially facing the axe.
At this stage, there is no confirmation of how many of those stores will ultimately close. The number of jobs that could be affected also remains unclear.
Roughly 30 per cent of staff affected by the restructuring have been redeployed within the business. Other companies have also stepped in to offer alternative positions to departing employees.
Magnet did not disclose how many jobs may be affected | MAGNET
Ms Rose acknowledged that Magnet’s larger showrooms had become a particular burden.
Expensive rent and high overheads were making those bigger branches unviable, she confirmed.
The combination of rising property costs and sprawling store footprints had placed growing pressure on the chain’s finances.
It was this reality that prompted the shift in strategy now being pursued by the company’s leadership.
Magnet has confirmed plans to close multiple stores | GETTY
Looking ahead, Ms Rose is steering Magnet towards smaller showroom formats as part of the company’s new direction.
“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.”
Ms Rose highlighted that the compact stores would feature creative spaces alongside kitchen displays.
She expressed enthusiasm about how much could be fitted into the reduced footprints.
“It’s amazing how many kitchens you can get on display in these small showrooms,” she said.
The approach marks a clear departure from the larger premises that had weighed so heavily on the business.
