Major high street brand announces nine store closures across the UK

22 April 2025, 15:20

Hobbycraft has announced they plan to shut at least nine stores - threatening 126 jobs.

Modella Capital, a private equity firm, has announced they will buy the arts and crafts retailer in August 2024.

They have announced they will close nine Hobbycraft stores in mid-July.

This will affect an estimated 72 to 126 jobs.

Hobbycraft also announced restructuring across its Bournemouth head office and Burton-on-Trent's distribution centre.

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"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," Hobbycraft CEO Alex Wilson said.

"For many our stores are more than just arts and crafts supplies, they have become places for gaining crafting ideas and inspiration.

"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."

This comes as Poundland may shut 800 stores across the country.

The chain reportedly hired Tenseo, an advisory firm, in March to manage the sale.

It comes as the Pepco group, a Polish company, said it was looking at "all strategic options" to separate itself from Poundland, seeking more profitable business is Europe.

Last year, the chain's profits fell by £641 million from January - September.

Poundland also revealed a slump in sales after their revenue fell by 9.3% from October - December last year.

Poundland's bosses blamed Reeve's hikes to employer National Insurance Contributions (NICs) and the national minimum wage increase, according to The Sun.

Chancellor Rachel Reeves announced she would raise employer's NICs from 13.8% to 15% in her autumn statement last year.

She also announced the NI threshold would reduce, with businesses paying contributions from £9,100 to £5,000.

Reeves has come under repeated criticism for her £40 billion tax raid in the autumn Budget.

Her £25 billion National Insurance hike for employers has prompted major warnings from business leaders, who have raised the alarm over plunging business confidence and fewer jobs.

Employers also face further bills hikes from April when the National Living wage rise by 6.7 per cent to £12.21 an hour.