Hobbycraft has been snapped up by specialist retail investor Modella Capital for an undisclosed sum.
Back in February, the arts and crafts retailer’s private equity owner Bridgepoint put the chain up for sale.
The firm had invested heavily into Hobbycraft, more than doubling the retailer’s store estate and strengthening its distribution network with a new warehouse in Burton, Staffordshire.
Hobbycraft chief executive Dominic Jordan said: “We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.
“I would also like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector and I am confident that, together with Modella Capital, we have a very bright future ahead of us.”
Modella Capital managing director Joseph Price said: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues and real authority in a sector on the high street that continues to grow and is set to do so in the future.
“We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the group, displaying a real commitment to bricks and mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business”.
Modella is affiliated to the turnaround firm Rcapital and lists Ted Baker’s UK licensing partner No Ordinary Designer Label, which collapsed into administration earlier this year, under its portfolio of investments.
The group was reported to be in the running to acquire The Body Shop but looks likely to lose out to beauty industry tycoon Mike Jatania’s Auréa consortium.
Hobbycraft employs around 1,500 people across 119 stores in the UK and is currently embarking on a store expansion programme.
Click here to sign up to Retail Gazette‘s free daily email newsletter
