Hobbycraft is not closing down its entire business in 2026; however, the company has completed a major restructuring process that involved the permanent closure of 18 underperforming stores across the UK. Following its acquisition by the retail investor Modella Capital in August 2024 and a subsequent Company Voluntary Arrangement (CVA) in May 2025, the brand has streamlined its physical footprint to focus on profitable locations and digital expansion. While some high-street sites were shuttered to ensure the long-term viability of the chain, Hobbycraft reported a strong recovery in late 2025 and early 2026, driven by a 6.3% increase in Christmas sales and a surge in online demand. The retailer currently operates approximately 100+ stores nationwide and remains the largest arts and crafts specialist in the United Kingdom.
The 2025 Restructuring Explained
In mid-2025, Hobbycraft underwent a strategic pivot to address rising business rates and inflationary pressures that had significantly impacted its bottom line. This process was formalized through a CVA (Company Voluntary Arrangement), a legal mechanism used by UK retailers to negotiate rent reductions and close unprofitable sites.
While 18 stores were identified as non-viable and subsequently closed, the vast majority of Hobbycraft’s leases were categorized as “viable” and moved to monthly rent payments. This move allowed the business to improve its cash flow and reinvest in its remaining estate, rather than facing total administration.
Full List of Recent Closures
The closures occurred in two main waves during 2025, with locations across England and Wales affected by the consolidation plan. Many of these sites held “closing down sales” with discounts ranging from 50% to 70% to clear inventory before the final shuttering.
September 2025 Closures: Stafford, Wigan, Maidenhead, Chichester, Crayford, and King’s Lynn.
Summer 2025 Closures: Bromborough, Stratford-upon-Avon, and Southport.
Early 2025/Late 2024 Closures: Bagshot, Basildon, Borehamwood, Bristol Imperial, Canterbury, Cirencester, Dunstable, Epping Forest, and Lakeside.
New Ownership: Modella Capital
In August 2024, the private equity firm Bridgepoint sold Hobbycraft to Modella Capital, an investor known for its work with retail brands like Paperchase and The Original Factory Shop. Modella’s strategy has focused on “right-sizing” the business, moving away from a model of rapid expansion to one of sustainable profitability.
Despite the store closures, the new owners have expressed a strong commitment to physical retail. They view Hobbycraft stores not just as shops, but as community hubs where customers can participate in workshops and live demonstrations, which helps differentiate the brand from online-only competitors.
Hobbycraft TV and Digital Growth
A key pillar of the 2026 survival strategy is the launch of Hobbycraft TV, a dedicated shopping and tutorial channel. Launched on Freeview channel 97, the platform allows the retailer to reach audiences directly in their homes with shoppable content and expert-led crafting sessions.
Digital sales have become a powerhouse for the brand, growing by nearly 14% year-on-year by early 2026. This shift has been supported by the Hobbycraft App and a loyalty program that now boasts over 7 million members, providing a stable recurring revenue stream that offsets lower footfall in some physical locations.
Current Financial Health Status
Reports from early 2026 indicate that Hobbycraft’s “bumper” Christmas trading period has successfully stabilized the company following a difficult 2024. Total revenue grew by 6.3% during the festive season, with specific categories like model making and haberdashery seeing double-digit growth.
The company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) has begun to recover from the lows seen during the restructuring. By shedding the 18 most expensive and least profitable sites, Hobbycraft has managed to protect approximately 1,800 jobs and secure the future of its remaining 100+ locations.
Practical Information for Customers
Store Locations: You can check the “Store Finder” on the official Hobbycraft website to see if your local branch is still operational.
Opening Hours: Most stores operate from 9:00 AM to 8:00 PM on weekdays, with shorter hours (typically 10:30 AM to 4:30 PM) on Sundays.
Click & Collect: This service remains free for orders over £10 and is a primary focus for the brand’s 2026 logistical strategy.
Workshops: In-store “Custom Craft” sessions and workshops can be booked online; these remain a core part of the “experience-led” retail model.
Hobbycraft Plus: The subscription service for small business owners and frequent crafters continues to offer a 10% discount on every purchase and bulk-buying benefits.
FAQs
Is Hobbycraft going out of business entirely?
No, Hobbycraft is not going out of business. It has successfully completed a restructuring program that closed 18 stores but secured the future of its other 100+ locations.
Which Hobbycraft stores have closed recently?
Recent closures include branches in Wigan, Stafford, Maidenhead, Chichester, and Southport, among others. A full list is available via the Hobbycraft store status page.
Who owns Hobbycraft in 2026?
Hobbycraft is owned by Modella Capital, a specialist retail investor that acquired the brand from Bridgepoint in August 2024.
Can I still use my Hobbycraft gift cards?
Yes, gift cards remain valid and can be used at any of the remaining operational stores or on the Hobbycraft website.
Is the Hobbycraft Club still active?
Yes, the Hobbycraft Club is a central part of their strategy, offering members exclusive discounts, birthday rewards, and early access to sales.
Why did Hobbycraft close 18 stores?
The closures were part of a CVA to eliminate “loss-making” sites that were burdened by high rents and business rates, ensuring the rest of the company remained profitable.
What happened to the Southport Hobbycraft?
The Southport store was one of the locations closed during the August 2025 wave of restructuring.
Is there a Hobbycraft closing down sale?
Closing down sales only occur at specific locations that are about to shut their doors permanently. The company as a whole is not holding a clearance sale.
Can I still shop online at Hobbycraft?
Yes, online shopping and the Hobbycraft App are fully functional and have seen significant investment and growth throughout 2026.
Will Hobbycraft open any new stores in 2026?
While the focus has been on restructuring, the company has indicated they may open new, smaller “boutique” style stores in high-performing areas once the current turnaround is complete.
What is Hobbycraft TV?
Hobbycraft TV is a new media channel launched on Freeview and online that provides tutorials and allows viewers to buy crafting kits directly from their screens.
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