Modella Capital Acquires Hobbycraft: New Era for UK’s Leading Arts and Crafts Retailer
Big news in the retail world: Modella Capital has officially acquired Hobbycraft, the UK’s largest arts and crafts retailer. This move marks a significant shift for Hobbycraft, which was previously under the majority ownership of Bridgepoint since 2010. Here’s everything you need to know about the acquisition, its implications, and what’s next for Hobbycraft.
Who Are the New Owners?
Modella Capital, a prominent investment group known for its focus on retail, has taken the reins of Hobbycraft. The acquisition, announced on Tuesday morning, comes with a promise of exciting changes and growth for the beloved craft store chain.
- Modella Capital: Specialises in investing in retail chains and has a track record of revamping and expanding its investments. Previously involved with brands like Paperchase and Tie Rack, Modella Capital brings a wealth of experience and financial muscle to the table.
What’s Happening with Hobbycraft?
Hobbycraft, with its 124 stores and approximately 2,000 employees across the UK, has been a cornerstone in the arts and crafts sector. The retailer reported a solid financial performance last year, with sales hitting £216 million and an adjusted EBITDA of £10.4 million for the financial year ending in 2024.
Here’s what you need to know:
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Expansion Under Bridgepoint: During Bridgepoint’s 14-year ownership, Hobbycraft expanded significantly, growing its store count from 47 to 124. This included plans for seven new stores in 2025.
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Financial Health: Despite the change in ownership, Hobbycraft’s strong financial performance underscores its robust position in the market.
Why the Change?
Bridgepoint decided to sell Hobbycraft in February, setting the stage for this new chapter under Modella Capital’s leadership. Here’s why this change matters:
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Investment and Growth: Joseph Price, Managing Director at Modella Capital, emphasised their commitment to enhancing Hobbycraft’s physical and online presence. This includes investing in new stores and boosting returns from existing sales channels.
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Cultural Fit: According to Hobbycraft CEO Dominic Jordan, Modella Capital’s deep understanding of the retail sector and shared vision make them an ideal partner. Their significant reserves of growth capital are expected to fuel further expansion and innovation.
Impact on the Retail Sector
The acquisition of Hobbycraft by Modella Capital signals a promising future for the retailer and the broader arts and crafts market. Here’s what it means:
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Retail Sector Dynamics: Modella Capital’s track record with retail investments suggests a potential for revitalisation and growth within Hobbycraft, aligning with broader trends of investment and expansion in the retail sector.
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Commitment to Physical Retail: Modella Capital’s focus on enhancing Hobbycraft’s physical footprint shows a commitment to traditional retail spaces, even as e-commerce continues to grow.
Hobbycraft’s Future Under Modella Capital
As Hobbycraft transitions under new ownership, here’s what customers and industry observers can expect:
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Enhanced Store Experience: Look forward to possible new store openings and improved shopping experiences in existing locations.
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Strengthened Online Presence: With Modella Capital’s emphasis on online business, expect enhanced digital strategies and a more robust online presence.
Background on Hobbycraft and Modella Capital
Hobbycraft, founded in 1995, has grown into the leading UK retailer for arts and crafts, offering a wide range of supplies for hobbies, crafts, and DIY projects.
Modella Capital, a prominent player in retail investment, is also linked with turnaround firm Rcapital, known for its work with brands like Little Chef and No Ordinary Designer Label.
Looking Forward
The acquisition of Hobbycraft by Modella Capital is more than just a change of ownership. It represents a strategic move towards expanding Hobbycraft’s market presence and enhancing its offerings. As the new chapter begins, both the retailer and its customers are set to benefit from increased investment and renewed focus on growth and innovation.
Stay Updated
For ongoing updates about Hobbycraft and its new direction under Modella Capital, keep an eye on industry news and Hobbycraft’s official announcements.
Relevant Links
- Hobbycraft Official Website: Hobbycraft
- Modella Capital Overview: Modella Capital
- Bridgepoint’s Past Involvement: Bridgepoint
- Retail Investment Trends: Retail Investment Insights
