Magnet Group’s creditors have voted to approve the national kitchen retailer’s CVA proposals, meaning the business can move forward with its property restructuring plans that were released last month.
The announcement follows a meeting of the company’s creditors earlier today, during which it was confirmed that over 90% of Magnet’s voting creditors supported the proposed CVA plans.
A CVA is an insolvency process which allows a financially strapped business to repay a portion of its debts over an agreed period. When the company announced its Company Voluntary Arrangement plans in June, the retailer said it was proposing closing 15 “underperforming” stores in an effort to ease estate costs.
Magnet says securing the approval for the plans 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.”