Investment group Modella Capital has bought Hobbycraft, it said on Tuesday morning.

The arts and crafts retailer has been majority-owned by fund management group Bridgepoint since 2010, but has changed hands for an undisclosed sum.

Hobbycraft has 124 stores and about 2,000 employees across the UK, and last financial year brought in £216 million in sales, it said.

Hobbycraft chief executive Dominic Jordan said of Modella Capital: “Their deep understanding of the retail sector, shared vision and cultural values, combined with significant reserves of growth capital, make them an ideal partner.”

Bridgepoint put the chain up for sale in February. In its Tuesday announcement, Hobbycraft said it made adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £10.4 million in the financial year ending in 2024.

Bridgepoint more than doubled the size of the retailer’s store estate during its 14 years of ownership, and this summer said it was planning to open seven new shops in 2025.

Joseph Price, managing director at Modella Capital, said: “We look forward to accelerating the team’s growth strategy through investment in the physical footprint of the group, displaying a real commitment to bricks and mortar retail, and by enhancing the returns generated from their existing sales channels, including their growing online business.”

Modella Capital specialises in investing in retailers. It has previously put money into chains including Paperchase and Tie Rack.

Aaron Collins, director at Bridgepoint, said: “Bridgepoint has been proud to support Hobbycraft over the past 14 years, during which it continuously invested for growth, significantly expanding its footprint from just 47 stores to 124 today.

“This growth is a testament to the passion and dedication of the entire Hobbycraft team. As the business moves forward under new ownership, we are confident that it will build on these foundations and deliver future success.”

Modella Capital is also affiliated with turnaround firm Rcapital, which used to own motorway services mainstay Little Chef.

According to its website, Rcapital has also invested in No Ordinary Designer Label, the licensing partner of Ted Baker in the UK, which appointed administrators earlier this year.

Ted Baker’s remaining UK stores disappeared from British high streets last week, some 36 years after the fashion chain first opened in Glasgow.