Hobbycraft to close some stores as part of restructuring
The owner of Hobbycraft is planning a major restructuring that could see the arts and crafts retailer close at lease nine stores.
According to a report by Sky News, Modella Capital is preparing to launch a company voluntary arrangement as early as Wednesday.
Subscribe to TRBThe private investment firm’s proposals include the shuttering of nine stores with the loss of around 100 jobs.
In addition, a further 18 shops will only remain open if negotiations with landlords over rent cuts are successful.
Some 97 stores, which employ 1,800 people, will be unaffected by the proposals. The report also states that there could be job cuts at Hobbycraft’s head office and distribution operations.
In a statement, a Modella spokesman told Sky News: “Modella Capital is absolutely committed to bricks and mortar retail, at a time when the sector is coming under increasing pressure.
“[Modella] understands that high streets provide a vital service to consumers, are an essential source of employment and are key to the future success of local economies.
“Modella Capital believes that many retailers can thrive on the high street; particularly those with a distinctive offer and a loyal customer base.
“Where necessary, Modella Capital has the skills and experience to restructure retailers that require it, in order to ensure they create profitable, ongoing businesses that will continue to serve communities and employ thousands of people across the UK.”
The news follows the announcement earlier this month that Modella Capital is to acquire WH Smith’s high street business for £76 million. The firm will continue to operate the business for a short transitional period under the WH Smith brand while it is rebranded as TG Jones.
