Key facts
- Hobbycraft has completed its 13-month company voluntary arrangement (CVA) restructuring ahead of schedule.
- The UK's largest craft retailer saw a 13% jump in online active users during the restructuring period.
- Online sales of paintable characters and figures increased by 343%.
- Demand for crochet kits surged 141% after a partnership with Tom Daley.
- Modella Capital, the owner, had considered offloading Hobbycraft.
- Hobbycraft was founded in 1995 and operates 105 stores across the UK.
Hobbycraft, the UK's largest craft retailer and a subsidiary of Modella Capital, has successfully completed its 13-month company voluntary arrangement (CVA) restructuring ahead of schedule. This emergence from restructuring marks a positive turn for the company, defying recent concerns surrounding Modella Capital's other high street acquisitions, such as TG Jones and Claire's Accessories.
During the restructuring period, Hobbycraft experienced a notable increase in online engagement, with a 13% rise in online active users and a 10% increase in new website users. The company attributed this growth, in part, to a surge in demand for model-making products, reporting a 343% jump in online sales of paintable characters and figures. Furthermore, a partnership with Olympian Tom Daley led to a 141% increase in demand for crochet kits.
Hobbycraft's chief operating officer, Graeme Campbell, stated that completing the CVA ahead of schedule was a significant milestone, and the company is now focused on growth and helping more people discover the benefits of crafting. Founded in 1995 by garden centre group Haskins, Hobbycraft was previously owned by investment group Bridgepoint from 2010 before being acquired by Mayfair-based Modella Capital in August 2024. The company operates 105 stores across the UK.
Modella Capital has a history of acquiring high street businesses and subsequently restructuring or divesting them. The firm cited weak consumer confidence and adverse government fiscal policies for its decisions to wind down Original Factory Shop and Claire's Accessories shortly after their acquisitions. Modella also recently pushed through a significant restructuring for 480 WH Smith locations, which involved overcoming opposition from landlords.