Hobbycraft sold to UK investment group Modella Capital amid retail slowdown

Hobbycraft has been sold to an investment group for an undisclosed sum.

Modella Capital bought the arts and crafts retailer from equity firm Bridgepoint, which has owned it since 2010.

Hobbycraft, which has around 2,000 employees and 124 stores across the UK, has been on sale since February.

Founded in 1995, the chain’s products range from baking supplies to sewing kits and paints.

Hobbycraft chief executive Dominic Jordan said Modella Capital was an “ideal partner”.

He said they have “a deep understanding of the retail sector, a shared vision and cultural values, combined with significant reserves of growth capital.”

The retailer made £216m in sales and £10.4m in profits last year.

Seven stores are planned to open in 2025, creating around 105 jobs.

Modella Capital has previously invested in high street names such as stationery chain Paperchase, which collapsed in February 2023 before Tesco bought its brand.

The announcement came as figures from the pressure group CBI revealed retail sales volumes fell for a third consecutive month in the year to August.

And 25 percent of retailers said they expect their business situation to deteriorate in the next three months, compared with 17 percent who said this in May.

But Joseph Price, managing director of Modella Capital, said they would back Hobbycraft’s “real commitment to physical retail”.