Hobbycraft on brink of being bought by Modella Capital - report

Arts and crafts retailer Hobbycraft is reportedly on the brink of being sold to a specialist investor whose executives have backed chains including Paperchase and Tie Rack.

According to Sky News, Modella Capital is in advanced talks to buy Hobbycraft from private equity firm Bridgepoint. City sources told Sky a deal could be signed within days.

Modella is affiliated to the turnaround firm Rcapital, a former owner of Little Chef.

On its website it lists its portfolio of investments as including No Ordinary Designer Label, the licensing partner of Ted Baker in the UK, which collapsed into administration earlier this year.

Hobbycraft, which has been owned by Bridgepoint since 2010, trades from more than 85 stores. The chain was founded in 1995.

Sky said it was unclear on Tuesday how much Modella was likely to pay for the company, or whether other bidders were waiting in the wings if the deal fell through.

Bridgepoint declined to comment to Sky, while Modella could not be reached for comment.