A MAJOR craft shop with 85 locations could be sold.
One of Britain’s leading arts and crafts retailers, Hobbycraft, is on the verge of being sold to Modella Capital, a specialist investor with a history of backing chains like Paperchase and Tie Rack.
Sky News has learned that Modella Capital is in advanced negotiations to acquire Hobbycraft from the private equity firm Bridgepoint.
The deal could be finalized within days.
Modella Capital is linked to the turnaround firm Rcapital, a former owner of Little Chef.
Its portfolio includes No Ordinary Designer Label, Ted Baker’s UK licensing partner, which went into administration earlier this year.
Hobbycraft was founded in 1995 and operates over 85 stores.
The brand has been owned by Bridgepoint since 2010.
Modella Capital and Bridgepoint have been contacted for comment.
Hobbycraft is the largest arts and crafts retailer in the UK.
Shoppers can bag everything they need for art, knitting and crochet, haberdashery, papercraft, wedding and party, baking, jewellery making and more.
The news of the sale comes just months after Bridgepoint, was said to be exploring “strategic options” for the business.
The private equity group hired US investment bank Raymond James to review the retailer’s operations in February.
However, even if the retailer is to be sold, it doesn’t mean store closures and redundancies could follow.
It’s normal for retailers to assess the value of their current ownership.
Successful retailers with solid growth potential may attract buyers looking to invest in a profitable venture.
Retailers struggling with profitability may be sold to investors or other companies that believe they can turn the business around.
