A MAJOR UK retailer is set to close several of its stores around the country with a number of layoffs expected.
is preparing to close at least nine of its stores around the UK, with 16 more at risk as well as around 100 jobs.
The arts and crafts chain, owned by that took over , is reported to be drawing up plans to close nearly a quarter of Hobbycraft operated stores by mid-July.
This is expected to affect between 72 to 126 jobs across the country.
Among those include redundancies at the company's head office in , and distribution centre in .
The private investment firm, known to specialise in taking over troubled retailers, are reported by Sky News to be launching a company voluntary agreement (CVA) as part of its sweeping restructuring.
The future of a number of its other stores are also said to be under review, with potential for the closure of up to 27 stores and loss of 250 jobs.
This is dependent on with landlords regarding rent cuts.
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.
“Making these changes is sadly a necessary action to enable us to keep our doors open to crafters up and down the country.”
Of the 124 current Hobbycraft stores across the UK, 97 will remain unaffected by the CVA, with 1800 jobs saved.
A Modella spokesperson 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.
He added: “Modella Capital believes that many retailers can thrive on the high street; particularly those with a distinctive offer and a loyal customer base.
“Where necessary, Modella Capital has the skills and experience to restructure retailers that require it, in order to ensure they create profitable, ongoing businesses that will continue to serve communities and employ thousands of people across the UK.”;
The private equity owner is finalising its CVA plans expected to be unveiled within days.
