One of the UK’s top arts and crafts retailers, Hobbycraft, is on the cusp of being acquired by a specialized investor with a strong track record in supporting successful retail chains. According to reliable sources in the City, Modella Capital is currently in advanced negotiations to purchase Hobbycraft from private equity firm Bridgepoint. The deal is expected to be finalized within the next few days.
Modella Capital is affiliated with Rcapital, a renowned turnaround firm that has previously owned popular brands such as Paperchase and Tie Rack. On their website, Modella boasts a diverse investment portfolio which includes No Ordinary Designer Label, the UK licensing partner of high-end fashion brand Ted Baker. Unfortunately, No Ordinary Designer Label went into administration earlier this year, as reported by Sky News. It was recently revealed that Ted Baker’s remaining 31 stores in Britain are set to close this week, putting 500 jobs at risk.
Hobbycraft, which currently operates over 85 stores, has been under the ownership of Bridgepoint since 2010. The company was established in 1995 and has since become a household name in the arts and crafts industry. While the exact amount that Modella is prepared to pay for Hobbycraft remains unknown, it is believed that the deal is a lucrative one. It is also unclear if there are other interested parties waiting to make a bid in case the negotiations with Modella fall through.
When approached for comment, Bridgepoint declined to provide a statement. Similarly, Modella could not be reached for comment. This acquisition could have a significant impact on the UK retail market and is one to watch in the coming days.
