Hobbycraft set to close nine stores

Hobbycraft is set to close nine stores, a move affecting up to 126 jobs, as part of a restructure led by new owners Modella Capital, it confirmed to the BBC.

The restructuring will also result in redundancies across its Bournemouth head office and distribution centre in Burton-on-Trent but it has not disclosed how many roles this will affect.

The stores set to close are; Bagshot in Surrey, Basildon in Essex, Borehamwood in Hertfordshire, Imperial Retail Park in Bristol, Canterbury in Kent, Cirencester in Gloucestershire, Dunstable in Bedfordshire, Epping Forest in Essex and Lakeside Shopping Centre in Essex.

The business said the shake-up is intended to help secure the future of at least 99 stores and 1,800 jobs across the business.

Alex Wilson, Hobbycraft chief executive officer, said: “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.”

The Hobbycraft CVA is expected to take a similar form to the restructuring at The Original Factory Shop, another Modella owned business.

Modella has reportedly drawn up plans to renegotiate rents at 88 of the company’s 178 stores. Currently, the brand employs about 2,000 people, with a proportion of its 176 head office and warehouse employees understood to be facing redundancy.

The dual restructuring processes will raise questions about whether Modella plans a similar cull of shops and workers at WH Smith, which it has said will be renamed TG Jones following the takeover.