news Magnet’s CVA proposals: the full story June 30


National British kitchen retailer Magnet put forward proposals to enter a Company Voluntary Arrangement (CVA), with 15 “underperforming” stores set to be closed as a result. Magnet says the proposed CVA will “address


historic property costs, strengthen the business and support its return to sustainable profitability”, with the process overseen by Natasha Harbinson, Will Wright and Chris Pole from Interpath. A CVA is an insolvency process which allows a financially strapped business to repay a portion of its debts over an agreed period. If the CVA proposals are approved, Magnet says it will be able to “address unsustainable property costs in a controlled and structured way”. However this can only happen if the business’ creditors agree to the arrangement and its terms. Magnet currently has 159 stores, with the


proposed closure of 15 locations representing 9.4% of the company’s entire store estate. Magnet says the remaining 144 stores will not be impacted by the changes and will continue operating as normal. Magnet has reassured colleagues impacted by


the proposals that they will be supported throughout


the process and that “suitable


alternative roles within the business will be offered wherever possible”. Additionally, Magnet says customers will not be impacted and that customer orders will remain a priority for the business. Customers with orders through a store that is proposed to close will have their orders transferred to their closest alternative Magnet store. Addressing the proposed


strategies, Magnet explained that these actions had helped strengthen the business’ performance, however “parts of the Group’s historic property footprint and cost base continue to put pressure on the business and its route back to sustainable profitability”. “This is a difficult decision and not


one we have taken lightly, particularly where colleagues may be impacted,” explained Sophie Rose, Magnet Group CEO (pictured). “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.


August 2026 “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.”


July 2 Days after Magnet announced its CVA plans,


kbbreview learned that a further 37 showrooms were facing uncertainty with their leases under negotiation with landlords.


Magnet disclosed the number of stores in


landlord negotiations during a meeting with creditors, with the number of locations impacted by rental negotiations totalling roughly 23% of its store empire.


Explaining its long-term plans throughout the


CVA process and beyond, Magnet told creditors that it is first seeking to “address property costs that no longer reflect the business we are today”. Following that, the retailer’s priority is to “reduce complexity and strengthen the route back to sustainable profitability”, with a view to invest in further growth down the line. In addition to the CVA proposals, Magnet also said it was taking steps to resolve remaining property costs at one of its production sites, however Magnet clarified the site has already been “exited operationally” and suppliers will therefore see no disruption.


July 9 The following week, it emerged that


rival national kitchen retailer Wren was trying to poach Magnet clients, having launched a new webpage targeted directly at customers who are “worried about Magnet store closures”. This followed Magnet’s insistence that customers would not be impacted by the CVA proposals. However, Wren’s new


webpage claims it “can help” customers who are


“worried” about the closures, despite Magnet’s reassurances. This all follows the sudden closure of Wren’s US business, which saw all of its American showrooms abruptly closed in April. Wren


also says it will honour Magnet customers’ deposits. The website’s small print kbbreview


explains that this offer “applies where a customer has cancelled a Magnet kitchen order and lost part or all their deposit. Wren will honour a deposit value equal to 10% of the Wren kitchen price, applied as a deposit contribution.” When approached by kbbreview for comment on this story, Magnet reaffirmed: “Our proposed CVA is focused on addressing a small number of historic property costs within our store estate. It does not change our commitment to customers, and we are committed to ensuring no customer order is negatively impacted by the proposals. “Customer orders remain a priority and where


one of the stores proposed for closure is supporting an active customer order, we have a clear plan in place for that order to be transferred to the closest alternative Magnet store, so customers continue to be supported throughout their kitchen journey.” A senior Wren spokesperson also said to


kbbreview: “We are sympathetic to Magnet and recognise the impact the current situation may have on both its customers and staff. News of this nature can understandably create uncertainty for Magnet customers with existing orders or quotes.


July 20 Magnet Group’s creditors voted to approve the


retailer’s CVA proposals, meaning the business can move forward with its property restructuring plans. Over 90% of creditors voted to agree to the


plans, with Magnet saying the the approval marks an important milestone in its business transformation, demonstrating “strong confidence in the business” by its creditors. That sentiment was echoed by Sophie Rose, Magnet Group CEO, who commented: “Today’s result is a huge vote of confidence in Magnet and a significant step forward in our wider transformation. It gives us a clear and structured route to address the historic property costs that have been holding the business back, while protecting the vast majority of our estate and maintaining customer relationships.”


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