Hobbycraft in Advanced Talks for Sale to Modella Capital

One of the UK's prominent arts and crafts retailers, Hobbycraft, is reportedly nearing a sale to Modella Capital, a specialist investor known for backing various retail chains, including Paperchase and Tie Rack. According to sources from Sky News, discussions are at an advanced stage, with a potential deal expected to be finalized within days. Hobbycraft is currently owned by private equity firm Bridgepoint. Modella Capital is linked to Rcapital, a turnaround firm that previously owned the restaurant chain Little Chef. The investor's portfolio includes No Ordinary Designer Label, which was the licensing partner for Ted Baker in the UK, a brand that recently faced significant challenges, leading to the closure of its remaining 31 stores and putting approximately 500 jobs at risk. As of Tuesday, details regarding the financial terms of the potential acquisition remain unclear, and it is uncertain if other interested parties are in the mix should the negotiations with Modella falter. The situation highlights the ongoing volatility in the retail sector, particularly for brands struggling to maintain their market presence amid changing consumer behaviors. Both Bridgepoint and Modella Capital have refrained from commenting on the matter, leaving the market speculating about the future of Hobbycraft and the implications of this potential sale for the broader retail landscape in the UK.