Hobbycraft, a prominent UK retail brand specializing in craft supplies, is reportedly considering a sale, casting uncertainty over the future of its 97 stores. This potential transaction follows an expression of interest from an undisclosed buyer last week, according to Retail Gazette. Sources suggest this could lead to a thorough search for new ownership.
The news comes just months after Hobbycraft’s parent company, Modella Capital, enacted a restructuring plan. This initiative resulted in the loss of 126 jobs and the permanent closure of nine outlets. In May 2025, the chain undertook a Company Voluntary Arrangement (CVA) to mitigate the risk of collapse. This strategy was designed to facilitate the exit from certain lease agreements, aiming to save around £10 million annually.
Hobbycraft’s restructuring efforts were intended to protect the remaining 97 locations and the employment of approximately 1,800 workers nationwide. Modella Capital has a history of rescuing struggling retailers, having saved brands like Claire’s and The Original Factory Shop over the past year before restructuring and subsequently appointing administrators for both.
In a statement regarding the company’s performance, Hobbycraft chief executive Alex Willson noted, “In terms of key highlights, we were buoyed by strong online sales, while still seeing promising results across our store portfolio.” He added that as they approach 2026, total sales have increased by 6.3% year-on-year. Willson expressed optimism that by catering to their core craft enthusiasts as well as newer hobbyists, the company can continue its growth trajectory into the next year.
Following a strategic review, Hobbycraft has confirmed on its website the closure of several stores, stating, “As a result, the stores listed below are now closed.” This decision reflects ongoing efforts to streamline operations and focus on profitability.
As the situation develops, industry watchers will be keen to see how the potential sale unfolds and what it might mean for Hobbycraft’s future and its extensive customer base.
