Hobbycraft Owner Takes Over Discount Retail Chain

  • The Original Factory Shop sold to Hobbycraft owner Modella Capital
  • Modella Capital acquires 180 UK stores and 1,800 employees
  • Mike Ashley’s Frasers Group and Fortress also expressed interest
  • Discount chain previously owned by private equity firm Duke Street for over 17 years
  • The Original Factory Shop suffered a £1.7m pre-tax loss in the year to March 2023, down from £1.4m profit the previous year

The Original Factory Shop, a discount retail chain, has been acquired by private equity firm Modella Capital, the owner of Hobbycraft. This comes after talks with Baaj Capital stalled and previous owner Duke Street explored a sale for several years. The acquisition includes 180 UK stores and around 1,800 employees. Mike Ashley’s Frasers Group and Fortress, which owns Poundstretcher and Majestic, also expressed interest in the retailer. The Original Factory Shop suffered a £1.7m pre-tax loss in the year to March 2023, down from a £1.4m profit the previous year.

Factuality Level: 7
Factuality Justification: The article provides accurate and relevant information about the acquisition of The Original Factory Shop by Modella Capital, including details on the number of stores and employees involved, previous ownership, and financial performance. However, it contains some tangential information (e.g., Haribo store opening) that is not directly related to the main topic.
Noise Level: 7
Noise Justification: The article provides relevant information about the acquisition of The Original Factory Shop by Modella Capital and mentions some financial details, but it also includes unrelated information about Haribo opening a store in Kent’s Bluewater shopping centre which does not contribute to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the acquisition of The Original Factory Shop by Modella Capital and mentions financial figures such as pre-tax loss and sales decline, which are related to a retail company. However, it does not directly impact financial markets or specific companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event is mentioned in the text and it’s not the main topic.

Reported publicly: www.retailgazette.co.uk