Hobbycraft
Hobbycraft is a British retail chain specializing in arts, crafts, and hobby supplies, founded in 1995 in Bournemouth by Warren Haskins as the country's first national-scale arts and crafts superstore.[1][2] The company has expanded to become the United Kingdom's largest provider in the sector, operating 124 physical stores nationwide alongside a robust e-commerce platform offering over 25,000 products ranging from knitting and sewing materials to painting supplies and papercraft tools.[3][4] Initially backed by the Haskins family garden centre business, Hobbycraft was acquired by private equity firm Bridgepoint in 2010, fostering further growth through store openings and digital enhancements, before being sold to Modella Capital in August 2024 for an undisclosed sum.[5][3] Under its mission to encourage crafting among diverse demographics, Hobbycraft has achieved consistent revenue expansion, reporting £218.3 million in fiscal year 2024 sales driven by own-brand products and pricing strategies, though adjusted EBITDA fell to £10.4 million amid operational investments.[3][6] Employing over 2,000 staff, the retailer emphasizes community engagement via in-store workshops and online tutorials, positioning itself as a key enabler of creative pursuits in a market historically dominated by smaller independents.[4][1] Its defining strength lies in broad accessibility and product variety, supporting both hobbyists and professionals while navigating retail challenges through omnichannel integration.[7]History
Founding and Early Development
Hobbycraft was founded in 1995 by Warren Haskins, the chairman of the family-owned Haskins Garden Centres chain.[2][8] The company originated as an arts and crafts retailer, drawing on Haskins' experience in retail through his garden centre business, which had been established since the 19th century.[9] The first Hobbycraft store opened that year in Ferndown, Dorset, located adjacent to a Haskins Garden Centre in the Longham area near Bournemouth.[10][8] This initial outlet focused on providing a wide range of supplies for hobbies such as knitting, needlecraft, and other creative pursuits, positioning itself as a specialized superstore format in the UK market.[5] In its early years under Haskins family ownership, Hobbycraft expanded rapidly from this single location, capitalizing on growing consumer interest in home-based crafting activities during the late 1990s and early 2000s.[11] By 2010, the chain had grown to 47 stores across the United Kingdom, establishing itself as the country's leading arts and crafts retailer through a strategy of large-format outlets in accessible retail parks.[12][11] This period of development emphasized physical store growth and product diversification to cater to over 250 hobby categories, laying the foundation for nationwide presence while headquartered in Christchurch, Dorset.[10][5]Expansion and Market Growth
Hobbycraft, founded in 1995 with its first store in Bournemouth, initially focused on regional expansion in southern England before scaling nationally following its acquisition by Bridgepoint in 2010, which facilitated significant store rollout and infrastructure investment to establish it as the UK's leading arts and crafts retailer.[2][3] The company pursued steady physical expansion through the 2010s, opening four stores in 2015 and planning eight to ten additional locations in 2016 amid a broader uptick in consumer interest in arts and crafts hobbies.[13] By the early 2020s, this momentum continued, with seven new stores launched in the year ending February 2022, including sites in Leicester and Rochester, Kent, generating around 100 jobs and reflecting robust demand recovery post-pandemic restrictions.[14] In 2023, Hobbycraft targeted seven further openings by year-end, bolstered by 8.9% total sales growth over the first 26 weeks to August, driven by both in-store and online channels.[15] This pattern persisted into 2024 with five new stores, culminating in Blackpool, and plans announced for seven more in 2025, expanding the network toward 124 locations across England, Wales, Scotland, and Northern Ireland.[16][17] Market growth paralleled this store expansion, with revenue rising to £203.1 million in the fiscal year ending February 2022—11.4% above pre-pandemic levels after April 2021 reopenings—and further to £218.3 million the next year at 3.4% growth, underscoring sustained consumer engagement in crafting despite economic pressures.[18][19] These figures indicate Hobbycraft's increasing market penetration in a sector benefiting from hobbyist trends, though physical store emphasis has coexisted with digital sales comprising a growing share.[20]Ownership Transition to Modella Capital
In August 2024, private equity firm Bridgepoint sold its majority stake in Hobbycraft to Modella Capital, a specialist investment boutique focused on retail and consumer sectors.[3][21] The transaction, which signed and closed on August 23, 2024, marked the end of Bridgepoint's 14-year ownership period, during which it had acquired the retailer in 2010.[21][22] Financial terms of the deal were not publicly disclosed.[3] Bridgepoint had initiated the sale process in February 2024 amid a broader portfolio review, seeking to realize returns on its investment in the UK's largest arts and crafts retailer.[23] Modella Capital, founded as a private investment firm providing equity and debt financing to underperforming or transitional retail businesses, viewed Hobbycraft as a strategic fit for its portfolio, citing the company's established market position and potential for operational enhancements.[24][25] At the time of the acquisition, Hobbycraft reported fiscal year 2024 sales of £216 million and adjusted EBITDA of £10.4 million, reflecting steady performance in a competitive retail landscape.[21][24] The transition aligned with Modella Capital's emerging strategy of consolidating high street retail assets, as evidenced by subsequent acquisitions such as The Original Factory Shop in February 2025.[26] Under new ownership, Hobbycraft's leadership, including CEO Alex Willson, continued to emphasize digital and physical channel integration, though early post-acquisition challenges prompted restructuring considerations by March 2025.[27][4] This shift from Bridgepoint's growth-oriented private equity model to Modella's turnaround-focused approach introduced a new phase of strategic oversight for the retailer.[22]2025 Restructuring and Store Closures
In April 2025, Hobbycraft announced a restructuring plan through a Company Voluntary Arrangement (CVA) to address operational challenges and ensure long-term viability, proposing the permanent closure of nine underperforming stores out of its then-126 UK locations and affecting approximately 126 jobs.[28][29] The CVA, approved by creditors, compromised lease terms at 27 sites while securing the future of at least 99 stores and 1,800 positions, with the company continuing to trade during the process.[30][31] The closures targeted sites with low footfall and high operational costs amid broader retail sector pressures, including rising expenses and a shift toward e-commerce, despite overall sales growth in prior years.[32] Hobbycraft entered the CVA formally on May 13, 2025, enabling rent negotiations with landlords at additional branches to reduce financial strain without further immediate shutdowns. The confirmed closures occurred primarily in August and September 2025, with "everything must go" sales launched at affected stores:- Bromborough (August 2025)
- Southport (August 2025)
- Stratford-upon-Avon (August 2025)
- Wigan (September 4, 2025)
- Maidenhead (September 18, 2025)
- Chichester (September 18, 2025)
- Crayford (September 20, 2025)
- King's Lynn (September 22, 2025)
- Stafford (September 2025)