Modella Capital, owner of Hobbycraft, is understood to be intending to launch a CVA process to enable it to close nine stores involving around a hundred redundancies. It says that a further eighteen stores will only continue to trade if rent reductions can be achieved.
97 Hobbycraft stores will not be affected by the CVA, but it is believed that a number of head office employees could also face redundancy.
In a statement, Modella said: “Modella Capital is absolutely committed to bricks and mortar retail, at a time when the sector is coming under increased pressure.
“Where necessary, Modella Capital has the skills and experience to restructure retailers that require it, in order to ensure they create profitable, ongoing businesses that will continue to serve communities and employ thousands of people across the UK.”
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