Hobbycraft is set to launch a store shake-up in cut costs with bosses saying it comes as the retail sector is “under a great deal of pressure for a prolonged period and this restructuring is necessary to ensure a healthy future” for the chain
Nearly a quarter of arts and crafts chain Hobbycraft’s stores could close under plans to slash costs. Owner Modella Capital – which recently announced the takeover of WH Smith’s high street arm – said nine stores would shut by mid-July, with between 72 and 126 job losses.
The branches set to shut are: Bagshot, Basildon, Borehamwood, Bristol Imperial, Canterbury, Cirencester, Dunstable, Epping Forest and Lakeside But reports say another 18 will only remain open if it can persuade landlords to cut the rent bill.
Hobbycraft insisted that the wider shake-up, through a company voluntary arrangement (CVA), would safeguard at least a further 99 stores and more than 1,800 jobs.
The restructuring will also result in a number of management roles being made redundant, along with jobs in its Bournemouth head office and a distribution centre in Burton on Trent.
Alex Willson, Hobbycraft chief executive, said: “Hobbtcraft 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. 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.”
It comes as Modella is poised to launch an overhaul of The Original Factory Shop, the discount chain it bought just two months ago. According to Sky News, as many as between 30 and 40 outlets could close, resulting in hundreds more layoffs.
The cull will raise questions about possible closures among the 480 WH Smith stores – with 5,000 workers – that Modella is buying and rebranding TG Jones. Sources said it was too early to know whether the new owners would keep all high street shops.
The wider WH Smith group is keeping its name and will continue to run Smith’s shops at airports, stations and hospitals
