Friday, November 22, 2024

Hobbycraft sold to UK investment group Modella Capital amid retail slowdown

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Hobbycraft has been sold to an investment group for an undisclosed sum.

Modella Capital bought the arts and crafts seller from the equity firm Bridgepoint which has owned it since 2010.

Hobbycraft – which has around 2,000 employees and 124 stores across the UK – has been on sale since February.

On the block: Private equity firm Bridgepoint has sold arts and crafts seller Hobbycraft, which has 124 stores across the UK, after owning it since 2010

Founded in 1995, the chain’s products range from baking supplies to sewing kits to paints.

Hobbycraft chief executive Dominic Jordan said Modella Capital was an ‘ideal partner’.

He said they have a ‘deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital’.

The retailer made £216million in sales and £10.4million in profits last year.

There are plans for seven shops in 2025, which will create around 105 jobs.

Modella Capital has previously invested in High Street names such as stationery chain Paperchase, which collapsed in February 2023 before Tesco bought its brand.

The announcement came as figures from lobby group, the CBI, revealed that retail sales volumes dropped for the third month in a row in the year to August.

And 25 per cent of retailers said they expect their business situation to deteriorate over the next three months compared to 17 per cent who said this in May.

But Joseph Price, managing director at Modella Capital, said they would back Hobbycraft’s ‘real commitment to bricks and mortar retail’.

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