Speaking exclusively to kbbreview this week, Magnet CEO Sophie Rose says that over 30% of employees that were impacted by the company’s recent store closures have now been “redeployed” into other roles within the business, with the retailer also working with companies like Howdens to secure jobs for others.
At the end of June, the national kitchen retailer announced plans to put the business into a Company Voluntary Arrangement (CVA), with 15 “underperforming” stores set to close as a result. At the time, Magnet reassured colleagues impacted by the closures that they would be supported throughout the process and that “suitable alternative roles within the business will be offered wherever possible”.
This week, during the Magnet boss’ first exclusive interview since the company announced its CVA proposals, Rose acknowledged: “We have had to make difficult decisions, and it has impacted some colleagues. But we’ve been working really hard to redeploy as many of those colleagues as we can, which has been something that from the outset we’ve been really passionate about, really minimising that impact. And we’re really pleased to say that, to date – and obviously we’re still working through some of this – over 30% of impacted colleagues have been redeployed into other Magnet roles.
Rose continued: “And where the geography doesn’t allow, and sometimes that is the case and it’s inevitable, we haven’t stopped there in terms of just working within our own portfolio. We’ve also proactively reached out to other businesses in the KBB sector. A great example of that is actually Howdens, and we’ve worked with them where they have job opportunities. And again I’m really pleased to say that a number of our impacted colleagues have been able to find jobs in some of their depots too.
“I think that’s a really great example of putting your people first, despite the fact that, yes, they’re competitors, but we can work together. I’m really proud of that and we will continue to work hard to redeploy as many impacted colleagues as we can.”
Rose also gave an update on the future of the business following the CVA’s recent approval from Magnet creditors, saying: “Reviewing and evolving our property estate estate isn’t a new part of our plan. It isn’t something that’s happened just because of the change in ownership. Over the last couple of years, we’ve been closing a lot of stores organically, where we’ve been able to exit those stores and agree a suitable deal with the landlord. And we’ve been relocating a number of stores across the last two years as well into our new format model.
“But the CVA has really given us is a really targeted way of being able to address those specific locations that were ultimately unsustainable for us, that were not fit for the magnet of who we are today, and were ultimately holding us back. So that’s enabled us to really now look at putting our time and our energy, our focus and our investment into the areas of the business that we do see opportunity in the future.”
You can listen to the full exclusive interview with Magnet CEO Sophie Rose on a bonus episode of The kbbreview Podcast next week.