Nobia plans closure of underperforming Magnet stores

Parent company of Magnet, Nobia has announced it will close underperforming stores, and further decentralise operations, as part of its UK business transformation.

27 Jun, 24

Parent company of Magnet, Nobia has announced it will close underperforming Magnet stores and further decentralise operations, as part of its UK business transformation.

Nobia closes Yorkshire manufacturing site 2

The store closures will be considered for underperforming businesses which are up for lease renewal.

This move follows the closure of its Halifax manufacturing site, which reduced the number of its factories in the UK from five, in the first half of 2023, to two a year later.

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Nobia states transitioning to an “asset light model” in the UK will result in annual savings of approximately SEK 160m, which will reach full effect by 2025.

The total cost of these changes amount to approximately SEK 180m, of which approximately SEK 60m is non-cash.

Due to continued low volumes in new construction across the Nordic region, Nobia is also introducing cost-reducing measures, mainly related to reduction of indirect staff and external warehousing.

The annual savings from these measures will amount to approximately SEK 38m and will reach full effect by Q1 2025.

These measures will incur a cost of SEK 16m and will be recorded as items affecting comparability in the second quarter of 2024.

Further details will be announced when Nobia reports its second quarter results on July 18, 2024.

 

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