Hobbycraft, the UK's largest arts and crafts retailer, is closing nine stores in one of the biggest contractions in its 29-year history. The move follows the company's takeover by private equity firm Modella Capital and comes amid a surge in online sales and rising operational costs.
Branches across England will shut, putting dozens of jobs at risk, after a review of store performance, rent viability and local demand. The closures are part of a company voluntary arrangement (CVA) aimed at safeguarding the core business and preserving most of its 99 remaining stores.
Why Hobbycraft Is Restructuring
The retailer was acquired by Modella Capital in August 2024, according to Bridgepoint. Since then, it has faced the same pressures affecting much of the UK high street, including increased energy bills, higher wages and a slowdown in discretionary spending. Hobbycraft has seen a 58.2% rise in online sales over the past year, but the growth in digital revenue has not been enough to offset the costs of maintaining its entire physical store estate, Retail Gazette reported.
Chief executive Alex Wilson described the closures as a 'last resort' but said they were necessary to ensure the company's long-term survival. 'Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country,' he said. The restructuring plan aims to retain around 99 stores and protect approximately 1,800 jobs nationwide, The Standard reported.
Confirmed Store Closures
The closures, completed in mid-July, affected between 72 and 126 roles. Further redundancies are expected at Hobbycraft's Bournemouth head office and its distribution centre in Burton-on-Trent, according to BBC News.
Nine branches have now closed as part of the restructuring, according to Metro:
- Bromborough: 4 August
- Stratford-upon-Avon: 6 August
- Southport: 7 August
- Stafford: September
- Wigan: early September
- Maidenhead: September
- King's Lynn: September
- Chichester: September
- Crayford: September
Clearance sales offering discounts of up to 70% were held at the affected stores ahead of closure, National World reported.
More Locations Under Review
In addition to the nine closures, Hobbycraft has confirmed that a further 18 stores are under review and could close if negotiations with landlords fail, Halifax Courier reported. Some stores, including the Meadowhall branch in Sheffield, have been spared for the time being following assessments of performance and local demand, The Star reported.
Other retailers within Modella Capital's portfolio, such as The Original Factory Shop, are also undergoing restructuring, reflecting broader shifts across the UK retail sector.
Impact on Customers
Founded in 1995, Hobbycraft operates the largest specialist arts and crafts chain in the UK, known for products ranging from fabric and sewing kits to baking and papercraft supplies. The closures will affect local crafting communities, particularly in smaller towns where Hobbycraft is one of few dedicated arts retailers.
The company has said it remains committed to its online platform, which it sees as the primary growth driver for the business. However, for now, the fate of the 18 stores under review remains uncertain. The outcome of landlord negotiations will determine whether the contraction ends with the current list of closures or continues into next year.
