Magnet’s Andover showroom is set to close as part of a national restructuring plan affecting 15 stores across the UK.
The kitchen retailer has announced proposals for a Company Voluntary Arrangement, known as a CVA, as it looks to address property costs and strengthen the business.
Andover has been named among the stores proposed for closure with the local Magnet showroom based at Glenmore Trade Park, Greenwich Way, Andover.
Other stores listed for closure include Farnborough, Bridgwater, Brighton, Dorking, Watford, Weymouth and York Trade.
Magnet says the proposed closures affect underperforming stores, while the majority of its 159-store estate is not expected to be impacted and will continue to trade as normal.
The company says the restructuring is designed to address property costs that are no longer sustainable and support a return to long-term profitability.
The proposals are still subject to creditor approval.
Magnet has not confirmed how many employees will be affected by the closures, but says staff impacted by the proposals will be supported and offered suitable alternative roles within the business where possible.
The company also says customer orders remain a priority.
Where a proposed closure affects a customer’s local store, Magnet says the order will be transferred to the nearest alternative Magnet branch so customers can continue to be supported.
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.
“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.”
A CVA is a formal insolvency process that allows a company to reach an agreement with creditors while continuing to trade.
Magnet has not yet confirmed when the Andover showroom will close.