Modella-owned Hobbycraft survives restructuring
Hobbycraft has survived a restructuring led by its new owner, divisive high street private equity firm Modella Capital.
The UK’s largest craft retailer has completed its 13-month company voluntary arrangement (CVA) ahead of schedule, reporting a jump in online users.
The company’s emergence from its restructuring defies recent gloom around Modella’s swoops on other high street retailers, including TG Jones and Claire’s Accessories.
Hobbycraft saw a 13 per cent jump in online active users and a 10 per cent increase in new users of its website during the restructuring period.
This growth was buoyed by a boom in demand for model-making, the company said, with online sales of paintable characters and figures jumping by 343 per cent.
Demand for crochet kits surged 141 per cent following Hobbycraft’s partnership with olympian and knitting enthusiast Tom Daley, the firm said.
Graeme Campbell, Hobbycraft’s chief operating officer, said: “Completing our CVA ahead of schedule is an important milestone for Hobbycraft.
“With stronger foundations now in place, we’re excited about the future and focused on growing Hobbycraft by helping even more people discover the joy, confidence and wellbeing that comes from making something themselves.”
Hobbycraft was founded in 1995 by garden centre group Haskins and had been owned by investment group Bridgepoint since 2010. It operates at 105 stores across the UK.
Mayfair-based Modella Capital snapped up Hobbycraft for an undisclosed sum in August 2024, but had been considering offloading the business in February this year.
Modella snaps up high street
The private equity firm has made swoops for a number of high street staples in recent years, often moving to offload or wind-down the retailers just months after acquisition.
Modella blamed weak consumer confidence and “adverse government fiscal policies” for its move to wind down Original Factory Shop and Claire’s Accessories soon after buying the firms.
Recently, the private equity firm pushed through a drastic restructuring designed to save the 480 high street locations it bought from WH Smith last year.
The proposal had faced significant opposition from landlords including FTSE 100-listed British Land over proposals to cut rent on profitable stores.
Modella eventually won over landlords by softening its terms. The restructuring was approved by a court at the start of this month and will cause the closure of 150 TG Jones locations.