An e-commerce company specializing in crafts, Lovecrafts, has announced its plans to explore a potential sale at a discounted price. According to sources familiar with the matter, the company is working with Interpath Advisory on the sale, which is chaired by media veteran Sir Peter Bazalgette. Founded in 2012, Lovecrafts has received investments from prominent growth investors including Highland Ventures, Balderton Capital, and Scottish Equity Partners.
Sources in the city have revealed that the company’s valuation is likely to be significantly lower than its previous worth, should a buyer be secured. Lovecrafts experienced a surge in sales during the COVID-19 lockdowns, as many consumers turned to hobbies such as knitting and sewing. However, growth has since slowed down, and its major shareholders are reportedly reluctant to inject additional funds into the business.
According to reports, second-round bids for Lovecrafts are expected to be submitted later this week. Sir Peter, who joined the company as chairman in 2018, is a well-known figure in the media industry, having previously served as chairman of ITV. In 2021, Lovecrafts raised a total of £16 million in funding, in addition to previous investments secured since its launch.
Neither Lovecrafts nor Interpath Advisory could be reached for comment at the time of writing. The potential sale of Lovecrafts highlights the challenges faced by businesses during the pandemic, and the impact it has had on consumer spending habits.
