Hobbycraft is the latest high street staple that is set to close multiple stores as businesses continue to struggle navigating the post-Covid economy.
Earlier this week, the arts and crafts chain confirmed that nine of its locations are earmarked for closure in a move that will see around 100 jobs cut.
The retailer is owned by Modella Group, the parent company that took over WH Smith, which is also experiencing drastic changes to its business
It is understood that Modella Group is exploring plans to shut down nearly a quarter of Hobbycraft stores by the middle of July.
Hobbycraft is set to close multiple stores
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Outside of traditional stores, there is also expected to be redundancies at the company's head office in Bournemouth, and distribution centre in Burton-on-Trent.
The private investment firm is expected to be going forward with a company voluntary agreement (CVA) as part of its restructuring overhaul, Sky News reports.
Notably, the future of the remaining number of stores is currently under review with there being potentially 27 locations and 250 facing the axe.
However, this process is dependent on how negotiations with landlords go in regards to cutting rent cost.
The high street has been hit with store closures in recent months PAHere is a full list of the Hobbycraft stores earmarked for closure this year:
- Bagshot
- Basildon
- Borehamwood
- Bristol Imperial
- Canterbury
- Cirencester
- Dunstable
- Epping Forest
- Lakeside
Hobbycraft chief executive Alex Wilson said: "Very sadly, the strength of our offering has not made us immune from the challenges faced by the retail sector in recent years.
"Closing stores is always a last resort and this has been an extremely difficult decision.
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The latest closure is another blow to the British high streetPA"Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country."
A Modella spokesman also said in a statement: "[Modella] understands that high streets provide a vital service to consumers, are an essential source of employment and are key to the future success of local economies.
"Modella Capital believes that many retailers can thrive on the high street; particularly those with a distinctive offer and a loyal customer base."
Out of the 124 current Hobbycraft locations across the country, 97 will remain unaffected by the CVA, with 1,800 jobs being kept.
