Hundreds of people are at risk of losing their job after Hobbycraft began a major restructuring.
The arts and crafts retail chain, which opened its first branch in 1995, is set to see at least nine of its shops close within weeks.
But another 18 branches on top of those are also at risk of closing if Hobbycraft’s new owners aren’t able to negotiate rent cuts for their premises.
That means up to 27 shops could close, putting between 72 and 126 jobs at risk.
Hobbycraft CEO Alex Wilson said: ‘Hobbycraft is the UK’s leading arts and crafts retailer, with a strong presence across the country and online, fantastic colleagues and loyal and engaged customers.
‘Very sadly, the strength of our offering has not made us immune to 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.’
Which Hobbycraft stores are closing?
Why are they closing?
Private investment firm Modella Capital has launched the Hobbycraft overhaul after buying the retailer last August.
Its restructure also includes redundancies at its head office in Bournemouth and the distribution centre in Stoke-on-Trent, though it’s not yet known how many people will lose their jobs there.
Modella said the overhaul is intended to try and save at least 99 branches and 1,800 jobs across the business as a whole.
A spokesperson said: ‘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.
Full list of Hobbycraft stores set to close
- Bagshot
- Basildon
- Borehamwood
- Imperial Retail Park
- Canterbury
- Cirencester
- Dunstable
- Epping Forest
- Lakeside Shopping Centre
‘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.’
When are they set to close?
There is not exact date for the closure of nine branches already named by Hobbycraft.
However, it’s expected the branches will close by mid-July.
There’s also currently no indication of when the additional 18 branches could close.
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