Following yesterday’s news that kitchen retailer Magnet is proposing to enter a CVA, BIFIS has offered its support to those who may be affected, with chief executive Damian Walters promising that the organisation will “ensure that installers are not left isolated during this process”.
The major UK kitchen retailer announced its intention to enter the financial arrangement yesterday, while also identifying 15 stores that it is looking to close to ease financial pressures.
In a statement released today, Walters said that The British Institute of Fitted Interiors Specialists (BIFIS) had received a number of enquiries from installers and suppliers after the news broke.
Addressing the situation, Walters said: “The breaking news yesterday that Magnet Kitchens has entered a Company Voluntary Arrangement (CVA) will understandably cause concern across the fitted interiors sector, particularly among installers and subcontractors who may be directly or indirectly affected. Magnet is a highly familiar brand in our industry, and therefore this news will inevitably create uncertainty for businesses, tradespeople and customers alike.
“Whilst we cannot comment on the CVA, primarily as Magnet are not BIFIS Partners, our immediate thoughts are with those installers who may now be seeking clarity around ongoing work, payment arrangements, future pipeline, warranties, customer communication or contractual obligations. These are real and practical concerns, and they deserve to be treated seriously, calmly and professionally.”
Walters said he wanted to reassure installers that the organisation is there to support them, whether they are registered as BIFIS members or not.
Walters continued: “If you are affected by this announcement, or if you are unsure of your position, we encourage you to contact Magnet in the first instance, and thereafter BIFIS, in order that we can help signpost appropriate guidance, listen to your concerns and work with relevant partners where possible to ensure that installers are not left isolated during this process.
“It is important that the industry responds with perspective. A CVA is a restructuring process, and while it reflects financial pressure within a business, it is also designed to provide a route towards stability and continuity. Reports indicate that the majority of Magnet’s store estate will continue to trade, with customer orders expected to remain a priority, and affected orders transferred where local stores are proposed for closure.
“Nevertheless, this announcement is a reminder of the pressures facing many parts of the fitted interiors supply chain. Installers are often the final link between retailers, manufacturers and consumers. They carry significant responsibility onsite, protect customer confidence and uphold the reputation of the wider sector. When uncertainty arises upstream, it is essential that those professionals are treated fairly, communicated with clearly and supported properly.
“BIFIS will continue to monitor the situation and engage constructively where we can. Our role is not to speculate, but to support professionalism, transparency and confidence across the fitted interiors industry. We will always advocate for installers, specialists and businesses who form the backbone of our sector.
Walters concluded: “To any installer affected by this news: please do not feel that you must navigate the uncertainty alone. Reach out, ask questions, check your position and seek support early. BIFIS stands ready to assist installers to navigate during uncertain times.”
News of Magnet’s restructuring comes just months after the retailer was acquired by private equity firm Alteri Partners, following its former parent company, Nobia, departing the UK market entirely.