Hobbycraft Seeks Restructuring with Modella Capital's CVA Initiative

Modella Capital, the owner of Hobbycraft, has announced plans to initiate a Company Voluntary Arrangement (CVA) to streamline operations. This restructuring move may lead to the closure of nine stores, resulting in approximately 100 job losses. The decision comes amidst pressures facing the retail sector, compelling Hobbycraft to consider rent reductions for 18 additional stores to sustain their operations. Despite this, 97 Hobbycraft stores will remain unaffected by the CVA. However, some redundancies might also occur at the head office. Modella Capital remains committed to physical retail and expresses confidence in its ability to restructure businesses, aiming to create sustainable, profitable enterprises that contribute positively to local communities in the UK.