According to City AM and other reliable, financial and specialist sources, Hobbycraft, which is one of the UK’s biggest arts and crafts retailers, has finally been bought by a specialist investor, Modella Capital, a team that has previously supported chains including Paperchase. The deal was completed after speculation that had been swirling for some months.
Modella Capital announced that it had bought the Bournemouth-headquartered company from its majority owner, the fund management group Bridgepoint, for an undisclosed sum.
Hobbycraft has 2,000 employees and 124 stores across the UK, and in its last financial year ending 19 February 2023, achieved revenue of £211m, compared to £203.1m in the previous period, according to documents filed to Companies House.
Despite an increase in sales, the company widened its pre-tax loss to £16.2m over 12 months, compared with a pre-tax loss of £7.4m in the year before.
“Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner”
The company said fall had been driven by weaker than expected sales in the first half of its financial year, exacerbated by “unprecedented inflationary cost pressures.”
Hobbycraft chief executive, Dominic Jordan, said of Modella Capital: “Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.”
Joseph Price, managing director at Modella Capital, said: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues and real authority in a sector on the high street that continues to grow and is set to do so in the future.
“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.”
Saying goodbye, Aaron Collins, director at Bridgepoint, said: “Bridgepoint has been proud to support Hobbycraft over the past 14 years, during which it continuously invested for growth, significantly expanding its footprint from just 47 stores to 124 today.
“This growth is a testament to the passion and dedication of the entire Hobbycraft team. As the business moves forward under new ownership, we are confident that it will build on these foundations and deliver future success.”
