Good news for Midlands' Hobbycraft stores as hands-on hobbies help with craft retailer's successful turnaround

There’s good news for staff at Hobbycraft’s Midlands stores as the craft retailer confirmed it has concluded a 13-month restructuring programme that keeps all 105 of its outlets open.

Hobbycraft Group Limited is the UK’s largest craft retailer, owned by Modella Capital, with stores across the Midlands including in Merry Hill shopping centre in Dudley, Wolverhampton, Selly Oak, Solihull and Telford.

The business, which last year announced store closures as part of an overhaul of its retail operation, announced today that it has completed its Company Voluntary Arrangement (CVA) ahead of schedule, concluding the restructuring programme that began in May 2025 and repositioning the brand to meet growing consumer demand for screen-free creativity and hands-on hobbies.

The restructure keeps all 105 Hobbycraft stores open - all of which have had new layouts to optimise space and boost the customer experience.

Graeme Campbell, chief operating officer at Hobbycraft, said: "Completing our CVA ahead of schedule is an important milestone for Hobbycraft.

“We'd like to thank our colleagues across the business for their hard work and commitment throughout this process, as well as our owners, suppliers, landlords and customers for their loyalty and continued support.

“With stronger foundations now in place, we're excited about the future and focused on growing Hobbycraft by helping even more people discover the joy, confidence and wellbeing that comes from making something themselves.”

Hobbycraft has reported a 13 per cent increase in online active users during the restructuring period and a 10 per cent rise in new users to its website, compared with the equivalent prior period, marking a major milestone in its transformation that has focussed on growing new audiences, building new routes to market and strengthening cultural relevance.

A growing interest in model making has helped to fuel the turnaround - with online sales of characters and figures increasing by 343 per cent, model paints and varnishes by 43 per cent, and model making tools by 26 per cent across the CVA period.

The increase in sales reflects the rise in people wanting to make and create physical products with their hands - a hobby that has attracted a strong interest thanks to the likes of celebrities Danny Dyer, James May and Rod Stewart speaking publicly about their enjoyment of it.

Needlework has also recorded strong sales momentum, led by crochet kits, which saw demand rise by 141 per cent after Hobbycraft launched a nationwide campaign to create crocheted postbox toppers to mark Sir David Attenborough's 100th birthday.

The exclusive Made With Love by Tom Daley crochet and embroidery collection also helped to expand the brand's reach into new customer segments. Since its launch in October 2025, the collaboration has driven a 42 per cent uplift in searches for crochet kits.

The retailer has also continued its landmark partnership with Mind UK, recognising the positive role crafting can play in supporting mental wellbeing and encouraging moments away from screens. Research from The Power of Making report, recently published by Hobbycraft and Mind UK, revealed more than eight million people use crafts to support their mental wellbeing, whilst 53 per cent of those who craft said it improves their mood.

With the majority of its stores located on retail parks, where footfall remains resilient, Hobbycraft says it is well positioned to support future growth. Following the restructuring, the retail estate is trading from a much stronger position, with all stores delivering positive profitability over the past 12 months. It has also opened three new stores in garden centres in Towcester in October 2025, Frankton in December 2025 and Grantham in April 2026, following the closure of nine poorly performing stores.

The retailer also has an expanding programme of in-store and online workshops, with specialist craft expertise available from in-store artisans. It is also hosting online tutorials and community-led creative experiences to inspire learning, creativity and wellbeing.

Looking ahead, Hobbycraft aims to continue to help people discover the well-being benefits of screen-free hobbies, with aims to expand its offering internationally.