Major craft shop loved by mums with 119 locations ‘could be sold’

A MAJOR craft shop loved by mums “could be sold”.

Hobbycraft’s owner is exploring “strategic options” for the business.

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The private equity group Bridgepoint has hired US investment bank Raymond James to review the retailer’s operations.

The review could result in Hobbycraft, which employs around 1,500 people across more than 100 stores in the UK, being put up for sale, The Sunday Times reported.

But city sources said plans were preliminary and there was no certainty of a sale.

Even if the retailer were to be sold, it doesn’t mean that store closures and redundancies could follow.

Hobbycraft, which currently operates out of 119 stores, has been owed by Bridgepoint since April 2010.

A Hobbycraft spokesperson said: “Hobbycraft is the UK’s market leader in Arts and Crafts. Since partnering with Bridgepoint in 2010 we’ve opened over 70 new stores (from 47 to 119); and created over 1,000 new jobs right across the UK.

“We’ve made significant new investments in a cutting-edge distribution centre in Burton and brought our community to harder-to-reach customers through a new accessible app and website.

“The growth we’ve delivered together has led to us nearly tripling overall revenues from £84m (Feb 2010) to £211m (Feb 23).”

Bridgepoint has been contacted for comment.

Hobbycraft revealed plans to open new stores in September 2023 after stronger demand for arts and crafts boosted sales.

The crafting retailer, which runs over 100 stores across the UK, opened seven new shops by the end of 2023.

Bridgepoint is one of the world’s leading private asset growth investors, specialising in private equity and private debt.

As of 2024, it has over €39.5bn of assets under management and a local presence in Europe, the US and China.

The private equity has owned several brands commonly seen on UK high streets at different times.

Pets at Home was acquired by Bridgepoint for £230million in July 2004.

It was then sold to KKR for an undisclosed sum in 2010.

In 2008, Bridgepoint purchased a 33% non-controlling stake in Pret A Manger from Mcdonald’s for £364million.

The brand was sold to JAB for an undisclosed sum in May 2018.

Bridgepoint currently owns Burger King‘s UK and French operations.

In October, FatFace, which was once owned by Bridgepoint, was acquired by Next for the value of £115.2million.

FatFace continues to operate as a separate entity, but shoppers can still buy the brand’s clothing on the Next website.

In 2007, FatFace was acquired for £360million by private equity group Bridgepoint Capital.

But in 2020, Fat Face’s lenders, Lloyds Banking Group and Goldman Sachs, took over the business from Bridgepoint and reduced its debts, reducing debts by £146.8 million to £25.6 million.

FatFace’s profits tripled as the retailer continued its investment into expanding its store estate and strengthening third-party partnerships.

Profits for the fashion retailer skyrocketed 198% to £17.3 million, up from £5.8 million, in the 52 weeks to 27 May 2023.

In other news, Authentic Brands Group (ABG), which owns Ted Baker, is exploring several cost-saving measures to shore up the company’s “soaring” costs.

Troubled fashion brand Superdry has said it is also looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.

This post first appeared on thesun.co.uk