Hobbycraft, a leading UK arts and crafts retailer, has embarked on a new chapter with its acquisition by Modella Capital. This significant transition comes amidst an economically challenging backdrop.
Modella Capital, a specialist retail investor with a track record of supporting high-profile retail brands, has acquired Hobbycraft from Bridgepoint, the previous majority stakeholder. While the exact financial terms remain undisclosed, this strategic move marks Modella’s continued investment in the retail sector, following its involvement with chains like Paperchase and Tie Rack.
This financial strain highlights the complexities faced by retailers in the current economic environment, where rising costs have impacted profitability despite growing consumer interest in arts and crafts.
Joseph Price, Modella Capital’s managing director, emphasised the firm’s commitment to enhancing Hobbycraft’s growth strategy, particularly by investing in its physical retail presence and expanding its online sales channels.
Additionally, the ongoing adaptations within the sector are evident as firms focus on both brick-and-mortar and digital platforms to capture evolving consumer preferences.
The strategic emphasis on physical store enhancements and online growth reflects a comprehensive plan to align with shifting market dynamics.
Maintaining a robust workforce remains essential to supporting both the in-store and online customer experience.
The acquisition signifies a noteworthy trend in the market where investment funds are increasingly influential in retail. Modella’s role highlights how such funds can drive change and resilience in companies facing economic headwinds.
The acquisition of Hobbycraft by Modella Capital underscores the dynamic nature of the retail industry in challenging times. It illustrates how strategic investments can foster resilience and growth within established brands.
