Hobbycraft, a prominent UK retail brand specializing in arts and crafts, is reportedly considering a sale, casting uncertainty over the future of its 97 stores. A potential buyer has expressed interest, prompting Hobbycraft’s management to explore options for a new ownership structure. This revelation comes from Retail Gazette, which indicated that sources expect a thorough search for a new owner to commence soon.
The contemplation of a sale follows a challenging period for Hobbycraft, which has seen significant changes under the ownership of Modella Capital. Earlier this year, the company enacted a restructuring plan that resulted in the loss of 126 jobs and the permanent closure of nine locations. In May 2025, Hobbycraft implemented a Company Voluntary Arrangement (CVA) to mitigate financial difficulties and avoid potential bankruptcy. This strategy aimed to terminate certain lease agreements, ultimately saving approximately £10 million annually.
As part of its efforts to secure the future of its remaining stores and protect the employment of around 1,800 workers, Hobbycraft adopted this approach. While the company has faced obstacles, Alex Willson, the chief executive, noted an uptick in online sales and positive performance across the store portfolio. He mentioned that total sales had increased by 6.3% year-on-year, expressing optimism about appealing to both loyal craft enthusiasts and new hobbyist customers as they approach 2026.
The nine stores that have recently closed are listed on Hobbycraft’s website, where the company explained that these closures were part of a strategic review intended to streamline operations. As the situation develops, the company remains focused on maintaining its core customer base while adapting to market demands.
Modella Capital has previously navigated similar challenges with other retailers, such as Claire’s and The Original Factory Shop. After restructuring both companies, Modella appointed administrators, showcasing a pattern of managing distressed assets in the retail space.
As Hobbycraft evaluates its next steps, the retail landscape continues to shift. The potential sale highlights the ongoing pressures faced by brick-and-mortar retailers, exacerbated by changing consumer behaviors and economic factors. Stakeholders will be closely monitoring developments to understand the implications for the brand and its employees.
