A POPULAR retailer is in calls with advisers to restructure its business which could put stores at risk.
The parent company of arts shop chain Hobbycraft has called in advisers from professional services firm FRP to look at potential options, including a company voluntary arrangement (CVA).
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CVAs are often used in the retail and hospitality sector to allow store closures and rent cuts from landlords.
Sky News reports that sources close to Hobbycraft, owned by Modella Capital, said work with FRP is at a very early stage and that no decision has yet been reached.
They added that there was a chance no major action would be taken.
A spokesperson for Modella said Hobbycraft trades from 124 stores and has a workforce of around 2,400 people.
The group bought Hobbycraft, which was founded in 1995, from private equity firm Bridgepoint last summer.
With shops across the country, Hobbycraft is the largest arts and crafts retailer in the UK.
Shoppers can bag everything they need for art, knitting and crochet, haberdashery, papercraft, wedding and party, baking, jewellery making and more.
Its sale last year came just months after previous owner Bridgepoint said it was exploring “strategic options” for the business.
The private equity group had hired US investment bank Raymond James to review the retailer’s operations in February 2024.
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