Hobbycraft acquired by investment group Modella Capital

The arts and crafts shop, which has a branch in Bolton, has been majority owned by asset manager Bridgepoint since 2010, but has changed hands for an undisclosed sum.

Hobbycraft has 124 stores and around 2,000 employees in the UK. Last financial year the company generated a turnover of £216 million.

Dominic Jordan, CEO of Hobbycraft, said of Modella Capital: “Their deep knowledge of the retail industry, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.”

Bridgepoint put the chain up for sale in February. In its announcement on Tuesday, Hobbycraft said it had made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £10.4m in the financial year ending 2024.

Bridgepoint has more than doubled the size of its stores in the 14 years of ownership and announced this summer that it plans to open seven new stores by 2025.

Joseph Price, Managing Director at Modella Capital, said: “We look forward to accelerating the team’s growth strategy by investing in the group’s physical footprint, demonstrating a real commitment to physical stores and enhancing returns from their existing sales channels, including their growing online business.”

Modella Capital specializes in investing in retailers. It has previously invested in chains such as Paperchase and Tie Rack.

Aaron Collins, Managing Director at Bridgepoint, said: “Bridgepoint has been proud to support Hobbycraft over the past 14 years, during which time the business has continually invested in growth and significantly expanded its footprint from just 47 stores to 124 today.

“This growth is a testament to the passion and dedication of the entire Hobbycraft team. As the business moves forward under new ownership, we are confident it will build on these foundations and deliver future success.”

Modella Capital is also affiliated with turnaround company Rcapital, which previously owned highway service provider Little Chef.

According to the website, Rcapital has also invested in No Ordinary Designer Label, Ted Baker’s UK licensing partner, which appointed receivers earlier this year.

Ted Baker’s remaining UK stores disappeared from Britain’s high streets last week, some 36 years after the fashion chain first opened its doors in Glasgow.