Investor completes Hobbycraft acquisition
Specialist retail investor Modella Capital has completed the acquisition of Hobbycraft from Bridgepoint Capital for an undisclosed fee.
Bridgepoint – which put the arts and crafts retailer up for sale in February – had doubled the size of Hobbycraft’s estate since its acquisition in 2010.
Dominic Jordan, chief executive of Hobbycraft, said: “We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.
“I would also like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector and I am confident that, together with Modella Capital, we have a very bright future ahead of us.”
Joseph Price, managing director of Modella Capital, added: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues and real authority in a sector on the high street that continues to grow and is set to do so in the future.
“We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the group, displaying a real commitment to bricks and mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business”.
Modella – whose executives have previously backed chains including Paperchase and Tie Rack – is affiliated with turnaround firm Rcapital, which formerly owned Little Chef.
The group has also invested in No Ordinary Designer Label, the UK franchise partner of Ted Baker, which collapsed into administration earlier this year. The retailer closed all of its UK stores last week.