Large craft store loved by moms with 119 locations 'can be sold'
A HUGE craft shop loved by mums could be sold, according to new reports.
Hobbycrafts Owner Bridgepoint is exploring 'strategic options' for the business, including putting the retailer up for auction.
The private equity group has hired US investment bank Raymond James to assess the retailer's operations.
The assessment could have consequences Hobby craftwhich employs around 1,500 people across more than 100 stores in Britain is being put up for sale, The Sunday times reported.
But city sources said the plans were preliminary and there was no certainty about a sale.
Even if the retailer were to be sold, this does not mean that store closures and layoffs could follow.
The store sells everything you need for art, knitting and crochet, haberdashery, paper crafts, weddings and parties, baking, jewelry making and more.
Hobbycraft, which currently operates from 119 stores, has been in debt to Bridgepoint since April 2010.
A spokesperson for Hobbycraft said: “Hobbycraft is the UK's market leader in Arts and Crafts. Since partnering with Bridgepoint in 2010, we have opened more than 70 new stores (from 47 to 119) and created more than 1,000 new jobs in the whole United Kingdom.
“We have made significant new investments in a state-of-the-art distribution center in Burton and brought our community to harder-to-reach customers through a new accessible app and website.
“The growth we have achieved together has seen us almost triple our total turnover, from £84 million (February 2010) to £211 million (February 23).”
Bridgepoint has been contacted for comment.
Hobbycraft unveiled plans to open new stores in September 2023 after stronger demand for arts and crafts boosted sales.
The craft retailer, which has more than 100 stores in the UK, opened seven new stores by the end of 2023.
Bridgepoint is one of the world's leading private capital growth investors, specializing in private equity and private debt.
As of 2024, it has more than €39.5 billion in assets under management and a local presence in Europe, the US and China.
The private equity firm owned several brands that were often seen on British high streets at different times.
Pets at Home was acquired by Bridgepoint in July 2004 for £230 million.
It was subsequently sold to KKR in 2010 for an undisclosed amount.
In 2008, Bridgepoint bought a 33% minority stake in Pret A Manger from Mcdonald's for £364 million.
The brand was sold to JAB for an undisclosed amount in May 2018.
Bridgepoint currently owns Burger King's British and French operations.
In October, FatFace, once owned by Bridgepoint, was acquired by Next for a value of £115.2 million.
FatFace will continue to operate as a separate entity, but shoppers can still purchase the brand's clothing on the Next website.
In 2007, FatFace was acquired by private equity group Bridgepoint Capital for £360 million.
But in 2020, Fat Face's lenders, Lloyds Banking Group and Goldman Sachs, acquired the business from Bridgepoint and reduced debt, reducing debt by £146.8m to £25.6m.
FatFace's profits tripled as the retailer continued to invest in expanding its store footprint and strengthening third-party partnerships.
The fashion retailer's profits shot up 198% to £17.3 million, up from £5.8 million, in the 52 weeks to May 27, 2023.
In other news, Authentic Brands Group (ABG), owner of Ted Baker, is exploring various cost-cutting measures to support the company's 'rising' costs.
Struggling fashion brand Superdry has said it is also looking at several “cost-cutting options” after reporting it is considering a major restructuring including store closures and job cuts.