Hobbycraft owner explores restructuring

Hobbycraft owner Modella Capital is considering a restructuring of the crafts chain it bought seven months ago.

The private equity firm has hired advisors at FRP to explore potential options including a company voluntary arrangement (CVA), Sky News reported.

Sources said that no decisions had been made and that it was possible that no substantive action would be taken.

A spokesperson for Modella confirmed that Hobbycraft traded from 124 stores and employed roughly 2,400 people.

It comes as the private equity firm is understood to be one of the last two remaining bidders to acquire WHSmith’s high street portfolio.

Modella is battling it out with Bensons for Beds owner Alteri for the 500-plus store estate. It is thought a deal could be announced at the retailer’s interim results in April.

The retailer placed the division up for sale last month to focus on its travel arm, which represents 85% of its total profits.

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