Hobbycraft, the well-known arts and crafts retailer, has revealed plans to close at least nine stores across the UK, a decision that could affect up to 126 jobs.
This restructuring effort is being spearheaded by Modella Capital, the private equity firm that acquired Hobbycraft in August 2024.
As part of this overhaul, the retailer will cease operations at the affected locations by mid-July.
Impact on Jobs and Future Store Reviews
The closure of these stores is expected to result in job losses for between 72 and 126 employees.
The company has also mentioned that several other stores are under review, suggesting that more closures could be on the horizon.
In addition to the store closures, the restructuring will affect staff at Hobbycraft’s Bournemouth head office and its distribution center in Burton-on-Trent, though the company has not yet specified how many roles will be impacted.
CEO’s Statement on the Difficult Decision
Hobbycraft’s CEO, Alex Wilson, expressed the difficulty of this decision, acknowledging the company’s strong presence in the UK market and the loyal customer base it has cultivated.
“For many, our stores are more than just a place to buy arts and crafts supplies; they are a source of inspiration and creativity,” Wilson stated.
“Unfortunately, even with such a strong offering, we are not immune to the challenges facing the retail sector.”
A List of Affected Stores
The nine stores set to close by mid-July are located in the following areas:
- Bagshot, Surrey
- Basildon, Essex
- Borehamwood, Hertfordshire
- Bristol: Imperial Retail Park
- Canterbury, Kent
- Cirencester, Gloucestershire
- Dunstable, Bedfordshire
- Epping Forest, Essex
- Lakeside Shopping Centre, Essex
These closures are part of the company’s effort to secure its future and maintain its presence for customers nationwide.
Despite the challenges, the company hopes these tough decisions will allow them to keep most of their stores open.
Modella Capital’s Plans for the Future
Modella Capital, the private equity firm behind the restructuring, is also overseeing a transformation at its other retail ventures, including The Original Factory Shop.
Modella has ambitious plans to secure the future of at least 99 Hobbycraft stores and preserve around 1,800 jobs across the business.
The firm has been active in acquiring and restructuring businesses, such as WH Smith’s high street operations, in hopes of stabilizing and growing their retail holdings.
A Broader Trend in UK Retail
Hobbycraft’s decision to close stores comes amidst a wave of closures across the UK high street.
Other major retailers like Poundland, Morrisons, WH Smith, and JD Sports have also made headlines recently for closing multiple locations.
More than 13,000 shops shut their doors in 2024, marking a 28% increase from the previous year.
The situation is expected to worsen, with experts predicting that around 17,350 shops could close in 2025, a record high since data collection began in 2015.
As the retail landscape continues to shift, many are left wondering what’s next for the UK high streets, as the challenges of rising costs and changing consumer habits show no signs of slowing down.