Hobbycraft, a prominent UK retail brand specializing in arts and crafts supplies, is reportedly considering a sale following interest from an undisclosed buyer. This development casts uncertainty over the future of its 97 stores and the jobs of approximately 1,800 employees.
According to Retail Gazette, sources indicate that the potential sale could initiate a thorough process to identify a new owner for the company. This speculation comes just months after Hobbycraft’s parent company, Modella Capital, implemented a restructuring plan that led to the closure of nine outlets and resulted in the loss of 126 jobs.
Recent Financial Challenges
In May 2025, Hobbycraft entered a Company Voluntary Arrangement (CVA) aimed at averting a financial collapse. This strategy was designed to help the retailer exit certain leases, ultimately saving the company about £10 million annually. The decision was part of a larger effort to protect the remaining stores and ensure the continuity of employment for its workforce.
Despite these challenges, Alex Willson, the Chief Executive of Hobbycraft, expressed optimism regarding the company’s sales performance. He noted a 6.3% year-on-year increase in total sales and highlighted the growth in both online sales and in-store transactions. Willson stated, “We were buoyed by strong online sales, while still seeing promising results across our store portfolio.”
Impact on Stores and Employees
The restructuring has already resulted in the permanent closure of nine stores, with the company listing these locations on its website as part of a strategic review. Hobbycraft’s actions reflect a proactive approach to secure its operations, but the uncertainty surrounding a potential sale raises questions about the future viability of the remaining outlets.
Modella Capital has successfully salvaged other retail brands, such as Claire’s and The Original Factory Shop, in the past year. However, the path forward for Hobbycraft remains unclear as it navigates the complexities of potential ownership changes.
As the situation unfolds, both employees and customers will be closely watching for updates regarding the company’s future. The coming months will be critical in determining whether Hobbycraft can stabilize and thrive or if further challenges lie ahead.
