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Modella Capital is reportedly preparing to appoint advisers to manage a potential sale of Hobbycraft, which has been prompted by interest from an undisclosed company, according to Sky News.
It is understood that the private investment firm, which acquired Hobbycraft in 2024, is likely to begin a formal auction process for the retailer.
News of a sale comes as Hobbycraft recorded a 6.3% increase in total revenues during the six weeks to 28 December 2025. The company attributed this performance to a partnership with Tom Daley, which increased demand for embroidery and crochet kits.
Established in 1995, the arts and crafts chain previously underwent a restructuring via a company voluntary arrangement (CVA). While the process led to a small number of store closures, it preserved some 1,800 jobs.
Modella co-founder Steve Curtis previously managed the disposal of the Paperchase brand to Tesco. The firm also acquired the high street division of WH Smith last year, subsequently rebranding it as TG Jones.
The investment group previously managed the restructuring of Claire’s and The Original Factory Shop. Both of those retail businesses eventually entered administration following their respective turnarounds.
Modella also completed the sale of Crafter’s Companion to Maven and founder Sara Davies in August 2025. The firm originally purchased Hobbycraft from the private equity group Bridgepoint.
Modella Capital and Hobbycraft have been approached for comment.
