Privately-owned specialist retail investment boutique, Modella Capital, has announced its acquisition of Hobbycraft, the largest arts and crafts retailer in the UK. This acquisition marks a significant shift for Hobbycraft, as Bridgepoint, the current majority investor, exits its investment after 14 years. Although financial details of the transaction remain undisclosed, the move underscores Modella Capital’s commitment to supporting growth within the retail sector.
Founded in Bournemouth in 1995 and acquired by Bridgepoint in 2010, Hobbycraft has grown into a nationwide business with over 2,000 colleagues and 124 stores across the UK. The retailer boasts an online club with over 7 million members and has consistently grown its profits since the Covid pandemic. Recognised for its workplace excellence, Hobbycraft was recently named the #2 Best Big Company to Work For in 2023 and has earned three-star ‘World Class’ status for the fifth time this year. In FY 2024, Hobbycraft achieved sales of £216 million and an Adjusted EBITDA of £10.4 million.
Modella Capital is a private investment boutique that specialises in offering growth solutions for retail organisations. With extensive knowledge and experience in the retail sector, Modella Capital is uniquely positioned to support Hobbycraft’s exciting growth strategy.
Dominic Jordan, CEO of Hobbycraft, expressed his enthusiasm about the new ownership: “We are delighted that Modella Capital is the new owner of this great business. Their deep understanding of the retail sector, shared vision, and cultural values, combined with significant reserves of growth capital, make them an ideal partner. I would also like to thank Bridgepoint for their support and collaboration over the past 14 years. Hobbycraft has evolved into a leading name in the arts and crafts sector, and I am confident that, together with Modella Capital, we have a very bright future ahead of us.”
Joseph Price, Managing Director at Modella Capital, shared his vision for Hobbycraft: “Hobbycraft is a business with fantastic potential, boasting a highly experienced management team, truly passionate store colleagues, and real authority in a sector on the High Street that continues to grow and is set to do so in the future. We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the Group, displaying a real commitment to bricks-and-mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business.”
Aaron Collins, Director at Bridgepoint, also reflected on the partnership: “Bridgepoint has been proud to support Hobbycraft over the past 14 years, during which it continuously invested for growth, significantly expanding 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 that it will build on these foundations and deliver future success.”
The acquisition by Modella Capital was supported by asset-based lender, Secure Trust Bank Commercial Finance.
