Hobbycraft to close nine stores as part of wider restructure

According to an exclusive report from Sky News, Hobbycraft is set to embark on a sweeping restructuring plan that could result in store closures and significant job losses across the UK.

Reports revealed that Hobbycraft’s private equity owner, Modella Capital, is preparing to launch a Company Voluntary Arrangement (CVA) – a formal insolvency procedure aimed at renegotiating agreements with creditors to avoid collapse.

The restructuring could lead to the immediate closure of at least nine Hobbycraft outlets, with approximately 100 employees facing redundancy.

In addition, another 18 stores are under threat if the company is unable to reach new rental terms with landlords. If fully implemented, the plan could affect up to 250 jobs.

The CVA is intended to secure the future of Hobbycraft’s remaining 97 stores and safeguard around 1,800 jobs.

Hobbycraft CEO, Alex Willson, said: “Hobbycraft is the UK’s leading arts and crafts retailer, with a strong presence across the country and online, fantastic colleagues and loyal and engaged customers.

“For many, our stores are more than just arts and crafts supplies, they have become places for gaining crafting ideas and inspiration.

“Very sadly, the strength of our offering has not made us immune from the challenges faced by the retail sector in recent years.

“Closing stores is always a last resort and this has been an extremely difficult decision. Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country.”