Hobbycraft owner eyes potential restructuring
It is understood that the Hobbycraft process is currently at ‘a very early stage’ and that no definitive decisions about a restructuring have been taken
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Hobbycraft owner, Modella Capital, has reportedly enlisted advisers from FRP to explore a restructuring at the crafts chain, Sky News has reported.
Modella, which acquired the retailer seven months ago, is examining its options such as a company voluntary arrangement (CVA).
CVAs, which are frequently used to facilitate store closures and rent reductions from landlords, are a popular tool in the retail and hospitality industries.
It is understood that the Hobbycraft process is currently at “a very early stage” and that no definitive decisions about a restructuring have been taken.
It remains possible that “no substantive action would be implemented”, sources close to the situation told Sky News on Wednesday (12 March).
Founded in 1995, Hobbycraft has a portfolio of 124 stores and a workforce of approximately 2,400 people. Modella acquired the crafts chain from private equity firm Bridgepoint in the summer of 2024.
Modella is currently one of two remaining bidders for WH Smith’s high street arm, with a deal expected to be secured in the coming months by either Modella or Alteri.
Modella Capital has been approached for comment.
