Modella Capital is exploring a restructuring of the crafts retailer that it bought seven months ago.
The report from Sky News says that “Modella Capital has drafted in advisers from FRP, the professional services firm, to examine potential options including a company voluntary arrangement (CVA).” A CVA is commonly used to facilitate store closures and rent cuts from landlords.
Modella Capital bought Hobbycraft for an undisclosed sum last August. Most recently the company bought The Original Factory Shop and is also understood to be vying with Alteri to purchase the High Street arm of WHSmith’s business.
Sky News reports that “sources close to the Hobbycraft process said on Wednesday that FRP’s work was at a very early stage and that no decisions about restructuring measures had been taken.”
