Hobbycraft has confirmed it will close at least nine stores across the UK as part of a mass restructure of the business.

The crafts specialist said the move will result in up to 126 redundancies, with roles at its Bournemouth head office and distribution centre in Burton-on-Trent also at risk.

The retailer added that “a number of other stores” are still being reviewed.

Hobbycraft said the store closures and restructure intend to help secure the future of at least 99 of its stores and 1,800 jobs across the business.

The nine impacted stores, which will stop trading by mid-July, include: Bagshot in Surrey, Basildon in Essex, Borehamwood in Hertfordshire, Imperial Retail Park in Bristol, Canterbury in Kent, Cirencester in Gloucestershire, Dunstable in Bedfordshire, Epping Forest in Essex, Lakeside Shopping Centre in Essex.

The confirmation comes after Sky News reported that the retailer was close to launching a company voluntary arrangement (CVA).

Sources told the title that Hobbycraft was in negotiations with landlords over 18 more stores regarding rent cuts. If unsuccessful, at least 150 further redundancies could follow.

Hobbycraft chief executive officer Alex Wilson said: “For many our stores are more than just arts and crafts supplies – they have become places for gaining crafting ideas and inspiration.

“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.”

The update comes as Hobbycraft owner Modella Capital prepares to impose steep rent cuts for the The Original Factory Shop’s store landlords. The private equity owner is finalising its plans for a CVA which could be unveiled within days.

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