Hobbycraft bought by investment group in huge high street deal
Dorset headquartered 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 2,236 employees and 124 stores across the UK – has been on sale since February.
The company reported revenues of £211m in the financial year ending February 19, 2023, an increase from £203.1m in the previous year according to Companies House filings.
But the retailer saw pre-tax losses widen to £16.2m over the 12 months – from a £7.4m loss reported the prior year.
There are plans for seven shops in 2025, which will create 105 jobs.
Modella is affiliated to the turnaround firm Rcapital, a former owner of Little Chef.
On its website it lists its portfolio of investments as including No Ordinary Designer Label, the licensing partner of Ted Baker in the UK, which collapsed into administration earlier this year.
Dominic Jordan, chief executive of Hobbycraft, praised Modella Capital, saying: “Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.”, City AM reported.
Joseph Price, managing director at Modella Capital, said: “We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the group, displaying a real commitment to bricks and mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business.”
