Hobbycraft exits CVA early as EBITDA triples to £15.5m
Hobbycraft has more than tripled its adjusted trading EBITDA to £15.5 million, up from £4.8 million a year earlier.
In the 52 weeks to 15 February, the crafting chain posted a £8.7 million statutory profit compared with a £10.1 million loss in the previous year. It also returned to like-for-like sales growth with an uplift of 2% against a decline of 4.3% in the prior 12-month period.
Subscribe to TRBHobbycraft said its performance improved throughout the year, with second half like-for-like sales up 4%.
The retailer said trading was underpinned by a shift in consumer behaviour, with more shoppers turning to screen-free hobbies. Model making and crochet led the way, with sales up 45% and 24% respectively while online searches for Japanese pop-culture Kawaii crafting items jumped by 221%.
Modella Capital acquired Hobbycraft in 2024 for an undisclosed sum. The retailer’s subsequent turnaround has allowed it to complete its company voluntary arrangement (CVA) two years early. The recovery was driven by a strategy that restructured the store estate, cut operating costs and improved stock management.
However, total revenue fell to £210.4 million from a previous £215.9 million following the restructuring, which meant the retailer ended FY26 with 107 stores, down from 124 a year earlier.
Having worked to stabilise its finances, Hobbycraft has now launched a new growth strategy aimed at expanding its market presence, widening its sales channels and responding to changing consumer habits.
This includes repositioning itself as ‘The Home of Creativity’ and trialling complementary retail formats, including three new garden centre locations. It is also continuing to roll out concessions such as its Post Office partnership and is expanding into social commerce with the imminent launch of a TikTok Shop.
Graeme Campbell, acting chief executive at Hobbycraft, said: “FY26 has been a pivotal, transformative year for Hobbycraft. While the retail sector faced continuing inflation and subdued consumer confidence, the decisive actions we took under our turnaround plan have right-sized our cost base, revitalised our core estate and returned the business to robust profitability.”
He added: “Achieving an exit from our CVA two years ahead of schedule is testament to the extraordinary commitment and passion of our colleagues across our stores, distribution centre, and head office.
“With our estate stabilised, debt reduced, and 2.8 million active Club members, we are energised to drive our growth strategy forward – positioning Hobbycraft as ‘The Home of Creativity’ and the undisputed leader in arts, crafts, and creative hobbies.”
