Bridgepoint sells Hobbycraft for undisclosed sum

Fund manager Bridgepoint Capital has disposed of British arts and crafts retailer Hobbycraft to investment group Modella Capital for an undisclosed sum.

Modella, which has previously supported chains such as Paperchase and Tie Rack, said it looked forward to accelerating Hobbycraft's growth strategy through investment in the physical footprint of the group, displaying "a real commitment" to bricks and mortar retail, and enhancing returns generated from existing sales channels, including its "growing online business".

When discussing Modella, Hobbycraft chief executive Dominic Jordan said: "Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner."

Hobbycraft reported a pre-tax loss of £16.2m for the twelve months ended 19 February, widening from £7.4m a year earlier, even as revenues rose from £203.1m to £211.0m.

Reporting by Iain Gilbert at Sharecast.com