Hobbycraft exits CVA ahead of schedule as screen-free hobbies and new model-making culture fuel turnaround

• Successfully completed CVA ahead of schedule, marking the conclusion of a 13-month restructuring programme
•  All 105 Hobbycraft stores have had new layouts optimising space and the customer journey
• Delivered growth in digital engagement, with online active users up 13 percent and new users up 10 percent over the CVA period, versus the prior equivalent period
• Strong performance in key hobby categories, led by Model Making; with Characters & Figures up 343 percent and Model Paints & Varnishes up 43 per cent
• Needlework continues to skyrocket, with sales for Crochet Kits up by 141 percent
• Opened three stores in Garden Centres across the UK – Towcester, Frankton and Grantham
• The growth reflects increasing consumer demand for hands-on, screen-free hobbies that support wellbeing, creativity and family time, reinforcing the broader shift towards meaningful offline activities

Hobbycraft Group Limited, the UK craft retailer, owned by Modella Capital, has completed its Company Voluntary Arrangement (CVA) ahead of schedule, concluding a 13-month restructuring programme that began in May 2025, repositioning the business to meet growing consumer demand for screen-free creativity and hands-on hobbies.

During the period, the brand reported a 13 percent increase in online active users and a 10 percent rise in new users to its website compared with the equivalent prior period, marking a significant milestone in the retailer’s transformation and positioning the business for its next phase of sustainable growth.

Hobbycraft has focused its transformation on three strategic pillars: growing new audiences, building new routes to market, and strengthening cultural relevance.

Category performance was led by Model Making, with online sales of Characters and Figures increasing by 343 percent, Model Paints & Varnishes by 43 percent, and Model Making Tools by 26 percent across the CVA period, reflecting a huge rise in the nation wanting to make and create physical products with their hands. This craft continues to attract a strong following among male hobbyists such as Danny Dyer, James May, and Rod Stewart, all speaking publicly about their enjoyment of it, while also gaining wider appeal across new audiences of all ages and genders.

Needlework also recorded strong sales momentum across the period, led by Crochet Kits, which saw demand rise by 141 percent. To build brand awareness and remain front of mind with consumers, Hobbycraft capitalised on the cultural moment of Sir David Attenborough’s 100th birthday by launching a nationwide yarn-bombing activation featuring crocheted postbox toppers. The stunt generated national media attention and helped drive a 41 percent uplift in Cotton Yarn sales during May, as customers were inspired to create their own displays for local communities.

Celebrity-led partnerships further strengthened Hobbycraft’s growth strategy, with the exclusive Made With Love by Tom Daley crochet and embroidery collection helping to expand the brand’s reach into new customer segments. Since its launch in October 2025, the collaboration has driven a 42 percent uplift in searches for “Crochet Kits”, demonstrating the impact of high-profile partnerships.

Beyond its commercial initiatives, the retailer continues its landmark partnership with Mind UK, recognising the positive role that making and 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 over eight million people use crafts to support their mental wellbeing, whilst 53 percent of those who craft say it improves their mood.

Collaborations with culturally aligned brands enabled the craft retailer to position itself at the heart of emerging consumer trends. For example, its collaboration with Love of Huns, the UK-based pop culture brand celebrating British “hun culture”, resulted in the launch of limited-edition Hunkins – hand-painted plush pumpkins inspired by iconic “hun” personalities. It generated thousands of social media impressions and widespread organic sharing from high-profile figures, including Richard Branson and Alison Hammond, delivering a 16 percent uplift in website sales on launch day and driving a 72 percent increase in searches for “pumpkins” across October 2025.

For kids, demand for sensory toys such as NeeDoh quickly became one of Hobbycraft’s fastest-selling products following its launch in April 2026, with thousands of units sold to date. Kawaii, meaning “cute” in Japanese, is another popular-growing category for the brand, with searches for “Kawaii” increasing by 492 percent during the CVA period. The trend, which spans craft kits, stationery, plush and creative accessories, continues to resonate with younger shoppers by combining collectability with hands-on creativity.

The retailer also strengthened its physical presence through the opening of three new stores in Garden Centre locations in Towcester (October 2025), Frankton (December 2025), and Grantham (April 2026), extending the craft retailer’s reach into new local communities while maintaining a disciplined approach to estate growth, by closing nine of its poorly performing stores.

With the majority of its stores located on retail parks, where footfall remains resilient, Hobbycraft is well positioned to support future growth. Following the restructuring, the retail estate is now trading from a significantly stronger position, with all stores delivering positive profitability over the past twelve months.

Hobbycraft is increasingly positioning itself not only as a place to buy products, but as a destination for discovery – where customers can learn new skills, explore their creativity and connect with others through making. This includes an expanding programme of in-store and online workshops, support from in-store Artisans with specialist craft expertise, online tutorials, and community-led creative experiences designed to inspire learning, creativity and wellbeing.

Looking ahead, Hobbycraft will continue to help more families discover the wellbeing benefits of making and screen-free creativity, with a particular focus on expanding its hobby category and Model World proposition, which offers an extensive range of model making kits, tools, paints and accessories for enthusiasts of all ages. The retailer has ambitions to expand these services internationally, ensuring the benefits of crafts can be enjoyed by families from across the globe.

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.”