One of many two remaining bidders for WH Smith’s excessive road empire is exploring a restructuring of Hobbycraft, the crafts chain it purchased simply seven months in the past.
CVAs – a broadly used device within the retail and hospitality sectors lately – are ceaselessly utilised to facilitate retailer closures and hire cuts from landlords.
Sources near the Hobbycraft course of mentioned on Wednesday that FRP’s work was at a really early stage and that no selections about restructuring measures had been taken.
It remained doable that no substantive motion could be applied, they added.
A spokesman for Modella mentioned that Hobbycraft traded from 124 shops and had a workforce numbering roughly 2,400 folks.
Modella, which specialises in shopping for challenged retailers, is vying with rival agency Alteri to purchase WH Smith’s whole excessive road property, with a deal anticipated within the coming months.
The agency’s executives have backed chains together with Paperchase and Tie Rack, and the agency final month acquired The Unique Manufacturing facility Store.
Modella purchased Hobbycraft, which was based in 1995, from the non-public fairness agency Bridgepoint final summer time.
A spokesman for Modella declined to touch upon the choices it was exploring, whereas FRP additionally declined to remark.
