Hobbycraft closes six stores in the UK: details of a large-scale restructuring.

Closure of Hobbycraft stores

According to The Sun: The well-known brand announced a 'everything must go' sale before its final closure. The popular retailer is closing six of its stores this month as part of a large-scale reorganization.

Hobbycraft stores have significantly reduced prices on the entire range - up to 70% before closure. Customers can catch good deals while stores are closing permanently.

The Hobbycraft branch in Wigan has already closed on September 4. Stores in Maidenhead and Chichester will close on September 18, and in Crawley - on September 20. The store in King's Lynn will close on September 22, and in Stoke-on-Trent - last, on September 28.

Hobbycraft, which has 110 stores in the UK, has already closed 12 of them.

“It is always difficult to say goodbye to some of our stores - it is always a last resort - but we believe that these changes will ensure an even brighter future,” said Hobbycraft CEO Alex Wilson.

“We are investing in our online business, exploring new exciting ways to engage with customers, such as Hobbycraft TV, and remain committed to inspiring creativity across the UK...” he added.

“Implementing these changes now is a necessary step to ensure that we can keep our doors open for hobbyists and creators across the country for many years to come,” he summarized.

Hobbycraft's Plans

Last summer, the brand was acquired by the private equity firm Modella Capital, which recently also purchased The Original Factory Shop and a division of WHSmith. Modella has a reputation for reviving struggling stores.

Earlier this year, Hobbycraft announced plans to close several of its establishments as part of a strategic assessment of the company. In June, nine stores were closed, including branches in Bristol, Dunstable, Borehamwood, and Basildon.

According to Hobbycraft, the reorganization will preserve 1800 jobs and at least 99 points of sale. In several other stores, management also started negotiations for leases with new tenants.

Other store closures

Rising costs, decreasing footfall, and the shift to online shopping have negatively impacted the shopping streets in recent years. This has led to a sequence of closures of other retailers.

Poundland, which was acquired by the investment firm Pepco in June, is closing 49 of its branches this month and a total of 68 stores by mid-October. River Island is also planning to close 33 of its branches, which received permission from the High Court, to balance its books.

Meanwhile, The Original Factory Shop will close its branches this month or by the end of the year as part of the reorganization. Footasylum has closed several stores across the country since the beginning of the year. The company GAME, which has about 240 stores in the UK, has also announced the closure of six of its stores in August and September.

The Claire’s jewelry brand has entered administration but plans to keep its stores open. However, customers can no longer shop online with this brand.

Thus, the closure of Hobbycraft stores is part of a broader trend in retail where competition from online sales forces many companies to rethink their business models. In the case of Hobbycraft, the company hopes to adapt to new conditions and focus on developing its online business to maintain its market position. This strategy may help preserve jobs and prevent further closures in the future.