Hobbycraft to shut nine stores and axe up to 126 jobs
Private equity firm owner Modella Capital is launching the overhaul after buying the arts and crafts retailer in August last year.
Hobbycraft has announced plans to shut at least nine stores across the UK in a move affecting up to 126 jobs as part of a restructure.
Private equity firm owner Modella Capital is launching the overhaul after buying the arts and crafts retailer in August last year.
Modella, which is also reportedly pursuing a restructuring at its The Original Factory Shop business, agreed to buy WH Smith’s high street business earlier this year.
On Tuesday, Hobbycraft said nine stores will stop trading by mid-July, affecting between 72 and 126 jobs.
It added that the future of “a number of other stores” is still being reviewed.
The retail chain said the restructuring will also result in redundancies across its Bournemouth head office and distribution centre in Burton-on-Trent. It has not disclosed how many roles this will affect.
It said the shake-up is intended to help secure the future of at least 99 stores and 1,800 jobs across the business.
Hobbycraft chief executive officer Alex Wilson said: “For many our stores are more than just arts and crafts supplies – they have become places for gaining crafting ideas and inspiration.
“Very sadly, the strength of our offering has not made us immune from the challenges faced by the retail sector in recent years.
“Closing stores is always a last resort and this has been an extremely difficult decision.
“Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country.”
The following stores are set to close:
– Bagshot, Surrey– Basildon, Essex– Borehamwood, Hertfordshire– Bristol: Imperial Retail Park– Canterbury, Kent– Cirencester, Gloucestershire– Dunstable, Bedfordshire– Epping Forest, Essex– Lakeside Shopping Centre, Essex