Hobbycraft, a popular arts and crafts retailer in the UK, is reportedly set to close several stores across Wales as part of a major shake-up. The potential closures in Cardiff, Swansea, and Newport come amidst plans to shut down up to 27 branches nationwide, impacting over 100 jobs, according to reports.
Modella Capital, a firm known for assisting struggling retailers, is expected to initiate a company voluntary arrangement (CVA) this week, with nine stores already earmarked for closure. If negotiations with landlords fail, an additional 18 stores could face closure, risking around 150 more jobs. However, the remaining 97 stores are set to continue operations, safeguarding 1,800 jobs.
The restructuring by Modella also anticipates changes at The Original Factory Shop, which they recently acquired. Reports suggest that 30 to 40 of these stores may also be at risk of closure. Questions arise about the future of WH Smith, another Modella-owned retailer, although no announcements have been made regarding potential closures at their stores.
A Modella spokesperson emphasised the company’s commitment to sustaining brick-and-mortar retail, acknowledging the importance of high streets in serving communities and supporting local economies. They highlighted their expertise in restructuring struggling retailers to ensure profitability, sustainability, and the retention of jobs across the UK.
Hobbycraft, established in 1995, has become a go-to destination for art and craft enthusiasts, offering a wide range of products from sewing machines and paint supplies to seasonal decorations and DIY kits. The brand has cultivated a loyal customer base, particularly among families, and has been a staple in the retail industry for decades.
The potential store closures in Wales have raised concerns among employees, customers, and stakeholders about the impact on local communities and the retail landscape. As discussions and negotiations unfold, the fate of Hobbycraft stores in Cardiff, Swansea, and Newport remains uncertain, fueling speculation about the future of the company in the region.
In response to the evolving retail landscape and consumer behaviours, Modella Capital’s strategy aims to ensure the long-term viability of retailers under its portfolio, including Hobbycraft and The Original Factory Shop. As the restructuring process unfolds, the focus remains on creating sustainable businesses that can thrive in an ever-changing retail environment.
The developments within the retail sector underscore the challenges faced by traditional brick-and-mortar stores in adapting to shifting market dynamics. As Hobbycraft prepares for potential store closures in Wales and across the UK, the industry awaits further updates on the company’s restructuring efforts and plans for the future.
The closure of Hobbycraft stores across Wales highlights the broader challenges facing retailers in the current economic climate. With uncertainties looming over the future of traditional retail spaces, stakeholders are closely monitoring the situation to assess the implications for jobs, communities, and the retail sector as a whole.