Full list of Hobbycraft stores to shut as major retail chain undergoes huge restructuring – with 16 more at risk
A MAJOR UK retailer is set to close several of its stores around the country with a number of layoffs expected.
Hobbycraft is preparing to close at least nine of its stores around the UK, with 16 more at risk as well as around 100 jobs.
The arts and crafts chain, owned by Modella Capital that took over WH Smith, is reported to be drawing up plans to close nearly a quarter of Hobbycraft operated stores by mid-July.
This is expected to affect between 72 to 126 jobs across the country.
Among those include redundancies at the company’s head office in Bournemouth, and distribution centre in Burton-on-Trent.
The private investment firm, known to specialise in taking over troubled retailers, are reported by Sky News to be launching a company voluntary agreement (CVA) as part of its sweeping restructuring.
Full list of Hobbycraft stores closing
All the Hobbycraft stores in the UK that will close by mid-July:
- Bagshot
- Basildon
- Borehamwood
- Bristol Imperial
- Canterbury
- Cirencester
- Dunstable
- Epping Forest
- Lakeside
The future of a number of its other stores are also said to be under review, with potential for the closure of up to 27 stores and loss of 250 jobs.
This is dependent on negotiations with landlords regarding rent cuts.
Hobbycraft chief executive Alex Wilson said: “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.
“Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country.”
Of the 124 current Hobbycraft stores across the UK, 97 will remain unaffected by the CVA, with 1800 jobs saved.
A Modella spokesperson said in a statement: “[Modella] understands 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.
He added: “Modella Capital believes that many retailers can thrive on the high street; particularly those with a distinctive offer and a loyal customer base.
“Where necessary, Modella Capital has the skills and experience to restructure retailers that require it, in order to ensure they create profitable, ongoing businesses that will continue to serve communities and employ thousands of people across the UK.”
The private equity owner is finalising its CVA plans expected to be unveiled within days.
RETAIL PAIN IN 2025
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs will cost the retail sector £2.3billion.
Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.
A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.
Three-quarters of companies cited the cost of employing people as their primary financial pressure.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.