One of the UK’s largest arts and crafts retailers Hobbycraft is in advanced talks with specialist investor Modella Capital over a potential sale.

Hobbycraft workshop

Source: Hobbycraft

Modella Capital, which has backed chains including Paperchase, Tie Rack and Ted Baker’s UK licensing partner No Ordinary Designer Label (NODL), is in advanced talks to snap up Hobbycraft from private equity firm Bridgepoint.

City sources told Sky News a deal could be done within days, although how much Modella is willing to pay for Hobbycraft, or whether other bidders are waiting in the wings, is unclear.

Modella is affiliated with turnaround firm Rcapital, the former owner of Little Chef, and its website lists its investments including NODL, the licensing partner of Ted Baker in the UK, which collapsed into administration earlier this year.

Hobbycraft trades from more than 85 stores and has been owned by private equity firm Bridgepoint since 2010.

The arts and crafts chain was founded by Warren George Haskins in 1995.