Hobbycraft owner explores sale after takeover interest

The private equity firm, which owns TGJones, is understood to be preparing to hire advisers to source interest from prospective suitors, Sky News reported.

It is unclear who made the initial approach, but sources expect the offer to prompt a formal sale process.

Modella Capital acquired Hobbycraft in August 2024 and soon after launched a company voluntary arrangement to shutter unprofitable stores.

The retailer delivered a 6.3% increase in sales during the six weeks to December 28, crediting the “Tom Daley effect” for driving demand for its beginner crochet and embroidery kits. 

Hobbycraft chief executive Alex Wilson said on the results: “In terms of key highlights, we were buoyed by strong online sales, while still seeing promising results across our store portfolio.

“As we head into 2026 with total sales up 6.3% year on year, we’re hopeful that by catering to our core craft fans, alongside our newer cohort of hobbyist customers, we will continue to see growth into 2026.”

Modella Capital made headlines last month when it pushed two retailers in its portfolio – Claire’s and The Original Factory Shop – into administration.

The firm told Retail Week at the time: “This has been a very tough decision. We have worked intensively in an effort to save both businesses, having made last-ditch attempts to rescue them, but neither has a realistic possibility of trading profitably again.

“A combination of very weak consumer confidence, highly adverse government fiscal policies, and continued cost inflation is causing many established and much-loved businesses to suffer badly.”