Hobbycraft owner plans store closures in major restructuring programme

Dorset headquartered Hobbycraft is reportedly set to close as many as 27 of its stores as part of a major restructuring.

Hundreds of jobs could be at risk as the company’s owner Modella Capital is planning to launch a CVA, Sky News is reporting.

It is thought that nine shops will close, resulting in about 100 jobs lost. A further 18 will remain open if negotiations with landlords over rent cuts end successfully.

The rest of the chain’s 97 stores will remain unaffected by the shake-up, meaning 1,800 jobs are protected.

Hobbycraft has 124 stores and a workforce of around 2,400 people.

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

FRP, the professional services firm, is said to be overseeing the Hobbycraft CVA.

CVAs are often used in the retail industry to facilitate store closures and rent cuts from landlords.