Major UK Arts and Crafts Retailer Hobbycraft Plots Sale After Significant Restructuring
Hobbycraft, a prominent UK arts and crafts retail chain with locations in Birmingham and Solihull, is currently being prepared for a potential takeover by an undisclosed buyer. This development follows a recent restructuring effort that resulted in the closure of nine stores and the loss of 126 jobs across the company.
Store Closures and Job Losses Impact West Midlands Branches
The affected stores include branches in Selly Oak and Shirley within the West Midlands region. These closures are part of a broader strategic move initiated by the chain's owners, Modella Capital, a private investment firm that acquired Hobbycraft in the summer of 2024. The restructuring aimed to streamline operations and reduce financial burdens.
In May 2025, Hobbycraft implemented a Company Voluntary Arrangement (CVA) to mitigate the risk of collapse. This legal mechanism allowed the retailer to exit certain property leases, saving approximately £10 million annually. The primary goal was to safeguard the future of its remaining 97 stores and protect the employment of around 1,800 workers nationwide.
Takeover Preparations and Owner's Track Record
Modella Capital is now in the process of hiring advisers to manage interest from potential suitors for Hobbycraft. This move comes amidst reports of a mystery buyer expressing interest in acquiring the chain. Notably, Modella has a history of rescuing and restructuring other retail brands, including Claire's and The Original Factory Shop, over the past year, though both ultimately entered administration.
Despite the challenges, Hobbycraft has shown some positive financial indicators. Chief Executive Alex Willson highlighted that the company experienced a 6.3% year-on-year increase in total sales as it entered 2026. He attributed this growth to strong online sales and promising results across the store portfolio, emphasizing the chain's focus on catering to both core craft enthusiasts and newer hobbyist customers.
List of Closed Stores and Future Outlook
On its official website, Hobbycraft confirmed the closure of several stores following a strategic business review. The affected locations include:
- Bagshot
- Basildon
- Borehamwood
- Bristol Imperial
- Bromborough
- Canterbury
- Chichester
- Cirencester
- Crayford
- Dunstable
- Epping Forest
- Kings Lynn
- Lakeside
- Maidenhead
- Southport
- Stafford
- Stratford Upon Avon
- Wigan
The chain remains hopeful that by continuing to serve its dedicated customer base and adapting to market trends, it can sustain growth throughout 2026 and beyond, even as takeover discussions progress.
