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Bidders for HobbyCraft Slow Ahead of Deadline
Listed under: News
Published: Monday, April 19, 2010
The range of enterprises expressing an interest in purchasing one of the industry's largest art and craft retailers has lost momentum, seeing a number of hotly-tipped favourites now ruled out of the race.
The family-owned business, HobbyCraft, which has so far attracted bids of up to £100 million, is currently one of the craft sector's leading retail outlets, generating pre-tax profits of £5.4 million last year alone, and seeing its overall sales rise to a whopping £68.7 million.
Previously interested bidders for the enterprise included the US private equity group, Blackstone – which emerged as a surprise contender earlier this year and already owns leading US firm, Michaels – and TA Associates, who recently acquired the prestigious design company, Cath Kidston. However, it is believed both firms are now out of the running for the retailer.
The race is now rumoured to be between mid-market private equity groups, Bridgepoint Development Capital and Exponent, who are both expected to put in offers later this month.
Bids are now expected to top £100 million for the retailer – something which is likely to see it increase its store numbers, and presence in the craft industry, significantly over the next few years.
The family-owned business, HobbyCraft, which has so far attracted bids of up to £100 million, is currently one of the craft sector's leading retail outlets, generating pre-tax profits of £5.4 million last year alone, and seeing its overall sales rise to a whopping £68.7 million.
Previously interested bidders for the enterprise included the US private equity group, Blackstone – which emerged as a surprise contender earlier this year and already owns leading US firm, Michaels – and TA Associates, who recently acquired the prestigious design company, Cath Kidston. However, it is believed both firms are now out of the running for the retailer.
The race is now rumoured to be between mid-market private equity groups, Bridgepoint Development Capital and Exponent, who are both expected to put in offers later this month.
Bids are now expected to top £100 million for the retailer – something which is likely to see it increase its store numbers, and presence in the craft industry, significantly over the next few years.
