What's Happening?
Modella Capital, the owner of the arts and crafts retailer Hobbycraft, is reportedly considering selling the chain following an approach from a potential buyer. The private equity firm, which acquired Hobbycraft from Bridgepoint in 2024, is preparing
to appoint advisers to manage interest from prospective buyers. The identity of the interested party remains undisclosed, but the approach is expected to initiate a comprehensive process to find a new owner. This development follows a recent restructuring of Hobbycraft through a company voluntary arrangement (CVA), which left most of its stores unaffected and protected 1,800 jobs.
Why It's Important?
The potential sale of Hobbycraft could have significant implications for the retail sector, particularly in the arts and crafts niche. A change in ownership might lead to strategic shifts, impacting employees, suppliers, and customers. The arts and crafts market has seen increased interest, especially during the pandemic, as more people engaged in home-based hobbies. A new owner could leverage this trend to expand Hobbycraft's market presence. Additionally, the sale could influence the competitive landscape, as new strategies and investments might be introduced to enhance the brand's market position.
