A TEES Valley kitchen maker is preparing to make redundancies for the third year in a row, as a rival firm was on the verge of going into administration.
Magnet, whose factory in Darlington was involved in one of the longest strikes in history, last night blamed "tough market conditions" for starting consultation over 23 potential redundancies in the town.
The announcement came as it emerged that 1,300 jobs are under threat at home improvement Homeform, which operates Moben Kitchens, Dolphin Bathrooms, Sharps Bedrooms and Kitchens Direct stores. It is understood that staff in Darlington, Middlesbrough and Durham were among those told to go home early last night, as the firm prepared to appoint Deloitte as administrators. About 1,500 self-employed fitters who work with the company are also at risk.
Homeform said it was "close to securing a deal that will safeguard the future" of Sharps and Kitchens Direct, and that it was trying to sell its Moben and Dolphin brands.
The stagnant housing market and low consumer confidence have been blamed for difficult trading in the home improvement sector, which saw Darlington-based conservatory maker Amdega go bust in April.
Magnet cut 19 manufacturing jobs at its Darlington plant last year, following 17 redundancies in June 2009, as part of an ongoing programme of cost cutting.
A spokesperson said the firm was hoping to avoid any compulsory redundancies among its 600-strong workforce this time around, and that it remained committed to Darlington, where it has had a site since 1973.
Sweden-based kitchen manufacturer Nobia took control of Magnet in 2001 in a £134m deal. In its most recent trading update Nobia warned of weak growth in the UK market.
Senior management are liaising with staff representatives during the consultation period and voluntary redundancies are being sought. All affected workers will be notified by July 6. The Unite trades union has members at the plant but has not been invited to take part in the process.
Magnet has 179 branches in the UK and positions itself in the middle to upper sector of the kitchen market. In recent years the firm, which also supplies kitchens and joinery to small builders through its network of trade branches, has moved towards offering customers a bespoke design and installation service.
Magnet hit the headlines almost 15 years ago when its Darlington plant became the scene of a bitter industrial dispute. About 320 workers were sacked from the factory following a strike over pay and conditions in September 1996.
Magnet stayed in the national spotlight for almost two years as the dispute divided communities and families across the region. The strike, which became one of the longest running in the country, was finally concluded with an £850,000 settlement deal which left some sacked workers with as little as £250 pay-offs. None were allowed to return to their jobs.
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