Hobbycraft
Hobbycraft staff

Hobbycraft, the UK's cherished arts and crafts retailer, is grappling with a harsh reality: a sweeping restructuring that could see nearly a quarter of its stores close, putting hundreds of jobs at risk.

Acquired by private equity firm Modella Capital in August 2024, the chain is navigating a challenging retail landscape with a company voluntary arrangement (CVA) to cut costs and secure its future. From bustling high streets to local shopping centres, these stores have long been sanctuaries for creativity, making the closures a blow to communities and crafters alike.

But for employees and loyal customers, the stakes are painfully high. Here's the full picture of what's unfolding.

Closures Hit High Street Hard

By mid-July 2025, nine Hobbycraft stores will shut their doors. The stores that 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

It is estimated that this will affect between 72 and 126 jobs. The company's voluntary arrangement aims to protect 97 stores and 1,800 jobs by renegotiating rents, but 18 additional branches face closure if landlord talks fail.

Redundancies are also planned at the Bournemouth head office and Burton-on-Trent distribution centre, though exact numbers remain unclear. This shake-up, driven by Modella's cost-cutting strategy, reflects a retail sector battered by rising costs and shifting consumer habits.

Modella Capital Reshapes Retail

Modella Capital, now steering Hobbycraft, WH Smith's high street stores, and The Original Factory Shop, is known for bold interventions in struggling retailers. Its £76 million ($ 1 Biillion) acquisition of WH Smith's 480 stores, soon to be rebranded as TG Jones, signals a broader high street overhaul.

For Hobbycraft, the CVA could save £10 million ($13 million) annually, but failure to secure rent reductions for the 18 at-risk stores could trigger 150 more redundancies. Industry insiders warn that Modella's simultaneous restructuring of The Original Factory Shop, with up to 40 potential closures, raises questions about the firm's long-term vision for its portfolio.

Shoppers Lament Local Losses

The closures add to a grim tally for UK high streets, where over 13,000 shops shuttered

in 2024 alone. Hobbycraft's stores, from Cirencester to Epping Forest, are more than retail spaces, they're creative hubs where communities gather for inspiration.

The potential loss of 27 stores threatens local economies and loyal customers, particularly in areas like Derby, already hit by retail downturns. Social media reflects growing concern, with shoppers voicing sadness over losing access to crafting resources.

The broader retail sector's woes, including 170,000 job losses since 2023, underscore the urgency of Hobbycraft's fight for survival.

Workers Bear Brunt Of Overhaul

For up to 250 employees, the future is uncertain—Hobbycraft's restructuring could strip away livelihoods and community ties. CEO Alex Wilson acknowledges the pain, stating, 'Closing stores is always a last resort and this has been an extremely difficult decision.'

As Modella Capital bets on a leaner operation to save the brand, the human cost looms large. Will these changes secure Hobbycraft's place on the high street, or will they erode the creativity and connection that define it?

The next few months will decide the fate of a beloved retailer—and the communities it serves. With workers and crafters holding their breath, the loss of these stores risks more than jobs; it threatens a way of life for many.

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