Hobbycraft, the UK-based arts and crafts retailer, has announced plans to close nine of its stores by mid-July, a move that could lead to the loss of up to 126 jobs. The closures are part of a restructuring strategy initiated by Modella Capital, the private equity firm that acquired Hobbycraft last year.
On April 27, 2025, the company revealed that the affected stores are located in Bagshot, Basildon, Borehamwood, Bristol (Imperial Retail Park), Canterbury, Cirencester, Dunstable, Epping Forest, and Lakeside Shopping Centre. This decision comes amid ongoing challenges that the retail sector has faced in recent years, which have impacted even well-loved brands like Hobbycraft.
Alex Wilson, the CEO of Hobbycraft, expressed the difficult nature of this decision, stating, "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."
In addition to the store closures, Hobbycraft is also reviewing the future of several other locations and expects further redundancies at its Bournemouth headquarters and the distribution hub in Burton-on-Trent. The exact number of potential job losses at these sites has not been disclosed, but the measures aim to secure the future of at least 99 Hobbycraft outlets and the livelihoods of around 1,800 employees still working within the organization.
Despite the impending closures, Hobbycraft's leadership remains optimistic about the viability of its remaining stores. Wilson emphasized that these changes are necessary to ensure that Hobbycraft can continue to serve its customers across the UK. The company currently operates 27 stores in total, including three locations in Wales—Cardiff, Newport, and Swansea.
Modella Capital's acquisition of Hobbycraft in August 2024 marked the beginning of a significant transformation for the retailer. As part of this overhaul, Modella is also expected to begin restructuring other brands in its portfolio, including The Original Factory Shop and WH Smith. Reports suggest that 30 to 40 stores under The Original Factory Shop could also face closures, although no specific plans have been confirmed.
A spokesperson for Modella Capital reiterated the firm's commitment to maintaining a strong presence in bricks-and-mortar retail, stating, "Modella Capital is absolutely committed to bricks and mortar retail, at a time when the sector is coming under increasing pressure. We understand 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."
As the retail landscape continues to evolve, many retailers, including Hobbycraft, are grappling with the challenge of adapting to changing consumer behaviors and economic pressures. The closures reflect a broader trend within the industry, where physical stores are increasingly competing with online shopping options.
Hobbycraft's decision to streamline its operations is part of a necessary strategy to ensure that the remaining stores can thrive. Wilson noted that the company's aim is to create profitable, ongoing businesses that will continue to serve communities and employ thousands of people across the UK.
While the news of store closures is undoubtedly disappointing for employees and loyal customers, there is still hope for the future of Hobbycraft. The company is focusing on enhancing the customer experience in its remaining locations and ensuring that they remain hubs of creativity and inspiration for crafters.
As the restructuring process unfolds, the impact of these changes will be closely monitored by both employees and customers alike. The arts and crafts community has expressed concern over the potential loss of local Hobbycraft stores, which have become integral to their crafting journeys.
In the coming weeks, Hobbycraft will continue to communicate with its employees and customers about the changes and what they mean for the future of the brand. The company remains committed to its mission of providing quality arts and crafts supplies while fostering a sense of community among crafters.
As the retail sector navigates through these challenging times, Hobbycraft's actions serve as a reminder of the importance of adaptability and resilience in the face of adversity. The company aims to emerge from this restructuring phase stronger and more focused on meeting the needs of its customers.
The arts and crafts retailer's journey is far from over, and as it moves forward, Hobbycraft is determined to keep its doors open for crafters across the country, ensuring that creativity continues to flourish.
