The giant chain for arts and crafts, Hobbycraft, is close to changing hands to Modella Capital, a specialist investment firm. This sale could be closed soon and would represent a change in ownership from private equity firm Bridgepoint. It might value the company between £60 million and £70 million, significantly below where it was sold previously.

The lovable arts and crafts chain hangs in a delicate balance of change. According to Sky News, Hobbycraft could soon have a new owner, as the retailer is in advanced talks to be sold to Modella Capital, an investment firm focused on investing in retail. The current owners are Bridgepoint, the private equity firm that bought the company in 2010.

What does this mean for Hobbycraft and its customers? Let’s take a closer look.
A Crafty New Chapter

One of the largest shops in the UK that sells all kinds of arts and crafts supplies is Hobbycraft. If you are into making things with your hands, then it is quite probable that you must have visited one of the many stores spread out in every corner across the country. It was a chain that had been around since 1995 and was huge in size over time. However, now it appears that the company may be on the verge of a major shake-up.

Who is buying Hobbycraft?

The potential new owner is Modella Capital. This investment firm specializes in buying and managing retail businesses. They have been involved with other well-known names like Paperchase and Tie Rack. While we don’t know the exact price yet, it’s expected that Hobbycraft will be sold for between £60 million and £70 million. That’s quite a bit less than the £100 million Bridgepoint paid for it back in 2010.

What’s Next for Hobbycraft?

Hobbycraft recently hinted that it was going to sell the business and consider new opportunities. Their spokesperson said they were focused on expanding their offering, online service, and opening new stores. They wanted to make sure they kept making their customers happy while they figured out their future.

Who Are Modella Capital?

Modella Capital is an investment firm looking to invest in businesses. The company has other business partners, including experience in turnarounds. For example, it teamed up with Rcapital, known to resuscitate fallen brands. Those very disciplines that Modella Capital will bring in may be the exact fresh ideas and changes Hobbycraft needs.

What Does This Mean for Shoppers?

This could spell exciting and uncertain times for the shoppers. Hobbycraft has been a one-stop shop for crafty enthusiasts from knitting needles to painting supplies. Now, this might change with different ownership: how things are done inside the store or what is available to shoppers. It’s hard to know precisely what will change, but more likely than not, some updates and new features might surface.

A Storied Past

The history of Hobbycraft is quite interesting. Founded in 1995, this became the many craft hobbyist’s favourite store within a very short period. Over the years, it went on continuously to introduce new ranges of products and increased the number of stores. However, sometimes even the popular stores like Hobbycraft need to either rethink their strategy or ownership in the changing retail markets.

Looking Ahead

While the sale is still in the works, very clearly, Hobbycraft stands at a crossroads. A deal with Modella Capital might bring about major changes; on the other hand, it also provides opportunities for new growth and prospects. The store’s focus will likely remain to provide great products and services to its customers; how they do this might change.

The Big Picture

It’s a changing world in retail, and changes like this are only part of how a business survives and grows. For Hobbycraft, this sale may also mean new ideas and improvements while still catering to the same craft-loving community. And so, shoppers wait with bated breath to see how things will be, although one thing is for sure—Hobbycraft will keep on being a mainstay in the world of arts and crafts.

In fact, as this deal is finally nearing completion, Hobbycraft will be awaiting the future with bated breath, much like its customers. Be it new products, refurbished stores, or perhaps just a change in management, this may turn out to be a very exciting chapter in the history of Hobbycraft.