Hobbycraft sold to Modella Capital

Hobbycraft has been acquired by retail investor Modella Capital, supported by Secure Trust Bank, for an undisclosed sum.

The Dorset-based arts and crafts retailer was sold by private equity firm Bridgepoint, which bought the business back in 2010 for £100 million.

Hobbycraft most recently posted revenues of £211 million for the 12 months ended 19 February, though faced pre-tax losses of £16.2 million – more than double the previous year.

Modella Capital posted on LinkedIn that the company was “delighted to announce the acquisition of Hobbycraft, the largest arts and crafts retailer in the UK, with more than 2,000 colleagues, 124 stores, and over 7 million Hobbycraft Club members.

“We look forward to working closely with Hobbycraft’s management team, led by Dominic ‘Dom’ Jordan, to execute their strategy over the long term.”

That includes plans to open seven new stores in 2025, creating 105 jobs.

Dom added: “Modella’s deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.”

Modella has also invested in No Ordinary Designer Label, the firm behind Ted Baker, which is planning to relaunch its UK online business following high street closures.

Hobbycraft was advised on the deal by Raymond James, Cleary Gottlieb, Strategy&, PwC and KPMG.

Modella was advised by Pinsent Masons, Moore Kingston Smith and RJP.