Private Equity Firm Explores Possible Changes for Crafts Chain
- Hobbycraft owner Modella Capital considering restructuring
- FRP advisors hired for potential options including CVA
- No decisions made yet, possibly no action taken
- Hobbycraft trades from 124 stores, employs 2,400 people
- Modella one of two remaining bidders for WHSmith’s high street portfolio
- Deal could be announced in April at interim results
Modella Capital, the owner of Hobbycraft, is exploring restructuring options for the crafts chain it acquired seven months ago. The private equity firm has hired FRP advisors to examine potential strategies, including a company voluntary arrangement (CVA), according to Sky News. Sources indicate that no decisions have been made and it’s possible that no significant action will be taken. A spokesperson for Modella confirmed Hobbycraft operates 124 stores and employs approximately 2,400 people. This move comes as the firm competes with Bensons for Beds owner Alteri to acquire WHSmith’s high street portfolio. A deal could be announced during the retailer’s interim results in April. Hobbycraft recently placed its division up for sale to concentrate on its travel arm, which generates 85% of its total profits.
Factuality Level: 7
Factuality Justification: The article provides accurate information about Hobbycraft’s potential restructuring and its involvement in the bidding war for WHSmith’s high street portfolio. However, it contains some tangential details about Primark and Pinterest collaboration which may not be directly relevant to the main topic.
Noise Level: 6
Noise Justification: The article provides some relevant information about Hobbycraft’s potential restructuring and Modella Capital’s interest in WHSmith’s high street portfolio but also includes unrelated content such as the Primark and Pinterest collaboration. The overall noise level is moderate due to the mix of relevant and irrelevant information.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Hobbycraft’s potential restructuring and Modella Capital’s consideration of a company voluntary arrangement, which involves financial decisions related to the crafts chain they bought. Additionally, it mentions Modella being one of the last two remaining bidders for WHSmith’s high street portfolio. These topics are relevant to financial markets as they involve private equity firms and potential acquisitions.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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