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Halfords in Talks for Shock HobbyCraft Bid
Listed under: News
Published: Tuesday, February 09, 2010
One of the country's top car and bicycle suppliers could become the new owner of the craft industry's leading art and craft store in what might be the most unexpected, yet eagerly-anticipated transaction in the history of the sector, according to recent reports in two of Britain's largest circulated newspapers, the Daily Telegraph and Financial Times.
Following the shock announcement late last year that HobbyCraft would be available for purchase for a whopping £70 million this year – after the company appointed financial expert, Grant Thornton, to help quadruple its store numbers over the next few years – it has now been revealed that the chief executive of Halfords is considering placing a bid.
The car and bike supplies specialist – which currently boasts an extensive portfolio of retail stores across the UK and is expected to generate a profit of somewhere between £80 million and £90 million this year – is one of several companies to have shown an interest in acquiring the store, with former Borders owner, Luke Johnson, also rumoured to be in talks with the enterprise.
It is believed Halfords has been looking into diversifying into new markets for quite some time and is keen to appeal to a more female customer-base – a demographic which currently accounts for approximately 60% of HobbyCraft's clientele.
Founded in 1995 by Warren Haskins, chairman of the Haskins Garden Centre group, HobbyCraft is presently still owned by the Haskins family and boasts more than 38,000 products, which are available via its 45 retail outlets across the world. The enterprise has made no secret of its plans to increase its share of the marketplace over the next few years and hopes to open a further 10 stores during the course of the next 12 months.
The company has seen sales rise significantly over the last year, as the recession and subsequent revival of 'make do and mend' culture has resulted in demand for craft-related products and materials soaring in recent times.
If the transaction does go through it could see the owner of Halfords become the proprietor of one of the leading businesses in the craft sector.
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Following the shock announcement late last year that HobbyCraft would be available for purchase for a whopping £70 million this year – after the company appointed financial expert, Grant Thornton, to help quadruple its store numbers over the next few years – it has now been revealed that the chief executive of Halfords is considering placing a bid.
The car and bike supplies specialist – which currently boasts an extensive portfolio of retail stores across the UK and is expected to generate a profit of somewhere between £80 million and £90 million this year – is one of several companies to have shown an interest in acquiring the store, with former Borders owner, Luke Johnson, also rumoured to be in talks with the enterprise.
It is believed Halfords has been looking into diversifying into new markets for quite some time and is keen to appeal to a more female customer-base – a demographic which currently accounts for approximately 60% of HobbyCraft's clientele.
Founded in 1995 by Warren Haskins, chairman of the Haskins Garden Centre group, HobbyCraft is presently still owned by the Haskins family and boasts more than 38,000 products, which are available via its 45 retail outlets across the world. The enterprise has made no secret of its plans to increase its share of the marketplace over the next few years and hopes to open a further 10 stores during the course of the next 12 months.
The company has seen sales rise significantly over the last year, as the recession and subsequent revival of 'make do and mend' culture has resulted in demand for craft-related products and materials soaring in recent times.
If the transaction does go through it could see the owner of Halfords become the proprietor of one of the leading businesses in the craft sector.
What do you think of this story? Email your thoughts to .(JavaScript must be enabled to view this email address)
