Hobbycraft owner explores restructuring seven months after acquisition
The owner of Hobbycraft is exploring a potential restructuring process of the arts and crafts retailer, just seven months after its acquisition.
Modella Capital – which is one of the remaining bidders for WHSmith’s high street estate – has drafted in advisers from FRP to examine its options, Sky News has reported.
One such option is a company voluntary arrangement, which are often used to facilitate store closures and rent reductions from landlords.
Hobbycraft trades from 124 stores in the UK.
Sources close to the process told Sky News that FRP’s work was at a very early stage and that no decisions had been made about any restructuring processes.
Modella acquired Hobbycraft from private equity firm Bridgepoint last summer after the retailer was put on sale in February 2024.
The firm’s executives have also previously backed retailers including Paperchase and Tie Rack, and last month acquired The Original Factory Shop.