THE parent company of Magnet Kitchens has become the latest retailer to feel the pinch on the high street.

Nobia UK has told suppliers that they must carry the burden of mounting costs.

In a letter seen by The Sunday Times, Roy Saunders, the company’s chief executive, wants a 5% cost reduction on all prices from this month.

Saunders said: “We have incurred severe price pressure throughout 2008 . . . As a result, we are not in a position to pass on this cost to the consumer.”

He goes on: “I appreciate that this is a significant and challenging request but these are extremely challenging times, which require equally challenging solutions in order to sustain our long-term business objectives.”

On the same day that rival MFI was rescued last week, Magnet Kitchens, Nobia UK’s biggest division, sent out a press release: “Magnet blossoms in a £3 billion industry.”

In it, Peter Kane, Magnet’s managing director, said: “There’s no real secret to our success. We’ve kept things simple.”

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