Section 172 Statement
Year ending 16 February 2025
This statement summarises how the directors have exercised their duties with regards to the matters set out in Section 172 (a to f) of the Companies Act 2006.
Hobbycraft Group of Companies
This statement covers the Hobbycraft group of companies, which comprises:
| Company Name | Company Number |
|---|---|
| MACRAME HOLDCO LIMITED | 15824848 |
| MACRAME MIDCO LIMITED | 15833023 |
| MACRAME BIDCO LIMITED | 15833199 |
| Hobbycraft Group Limited | 07216034 |
| Stitch 2 Limited | 07216740 |
| Stitch 3 Limited | 07217283 |
| Stitch Bidco Limited | 07068903 |
| Hobbycraft Trading Limited | 00806269 |
| Hobbycraft Superstores Limited | 03289788 |
Hobbycraft Group Limited is the Group’s parent company and the only trading company is Hobbycraft Trading Limited.
Our stakeholders
The Board considers the interests of stakeholders in decision-making and seeks to understand their interests via direct engagement by directors and by reviewing reports and updates from members of management.
The Group’s key stakeholders are outlined below along with details regarding why they are important to the Group and what is important to them :
- Colleagues:: the strength of our business depends upon the knowledge, hard work and dedication of our colleagues, who in turn rely on the business for stable employment and for opportunities to realise their potential.
- Customers: it is essential to our future that we consistently meet the needs of our customers and maintain brand loyalty, supported by our successful Club. We aim to continuously provide high quality products at accessible prices and to stay up to date with hobby and crafting trends.
- Communities and the environment: serving local communities is at the heart of Hobbycraft’s ethos, whether through catering for local crafting needs or through our charity partnerships, while we seek to minimise any adverse impact upon the environment.
- Suppliers: supplier relationships are fundamental to our success, not least because all our products are manufactured and delivered by suppliers, all our locations are leased sites and many of our essential services are provided by third parties. Furthermore, suppliers often rely on us for income and to create employment in their local areas.
- Regulators: we seek to comply with all applicable laws and regulations and to maintain a cooperative relationship with regulatory bodies. We are proud of our reputation for high standards of business conduct.
- Shareholders: we have a collaborative relationship with our shareholders and welcome the advice and experience that the majority shareholder brings to the Board. We rely on the majority shareholder as our main source of debt funding, and they rely on us to manage their investment in a sustainable way that generates value.
Consideration of long-term factors
The Board is mindful of the long-term implications of strategic decisions and carefully assesses those implications. The Board have launched a new strategy to maximise sales opportunities and drive footfall to the stores.
The interests of colleagues
The interests of colleagues are always factored into the Board’s decision-making. There is extensive retail experience among the senior team members who have a strong understanding of and a rapport with the colleague base. The senior team’s knowledge and active engagement enable the Board to maintain a sharp insight into the culture and views of colleagues.
In addition, Hobbycraft has a number of other effective engagement mechanisms including the fact that colleagues are kept informed of performance and strategy through regular presentations and updates. These updates are delivered via a combination of face-to-face meetings and company newsletters.
Executive directors attend key trading meetings throughout the period as well as regular meetings with colleagues.
Board meetings are attended by the People Director to ensure that the Board is kept abreast of employee-related matters, including demographics, diversity and gender equality, engagement activities, the results of surveys, labour turnover rates, learning and development activity, and pay and reward matters.
Our Diversity and Inclusion committee has the following mission statement: making sure all diversities are represented and included within our recruitment, advertising, products and content. The committee is made up of a diverse group of colleagues from across the business, with the outcome of committee meetings reported to directors on a quarterly basis.
With regards to health, safety and wellbeing, the Board is updated monthly on safety performance and risk management. Trained mental health first aiders are available to all colleagues, which is complemented by Hobbycraft’s partnership with Retail Trust, a charity that provides practical and emotional support. The Group also operates flexible working arrangements, which all colleagues are invited to apply for.
The Group invests in the learning and development of all colleagues. One example is the trainee manager programme to support colleagues in their journey to become store managers. The Group also continues to invest in the Artisan programme (our expert crafting colleagues who embody our love of craft and all things making) which aims to maximise colleagues’ talents.
Relationships with suppliers, customers and others
The Board is briefed on major contract negotiations with key suppliers and a formal policy is in place to govern the contract approval process. A balance is sought between the need to obtain value for money, to maintain or improve quality of service and to foster strong relationships with key suppliers. Any new suppliers are subject to a due diligence review, determining their ability to supply the products or service with acceptable quality, along with their financial stability and their legal and ethical position.
The sentiment of customers is measured via monitoring sales performance figures and shopping behaviours, as well as direct engagement using surveys and listening groups, all of which are closely monitored by the Board on a weekly or monthly basis. The interests of customers are considered in decision-making, such as with respect to the store portfolio, the online shopping experience, product selection, and the monitoring of suppliers to ensure quality and safety standards are met.
The Board is focused on meeting all regulatory obligations and strives for best practice in that regard, with decision-making informed by regular dialogues with regulatory bodies such as the Chartered Trading Standards Institute. Hobbycraft manages its tax affairs proactively to comply with tax legislation, engaging with HMRC where required and seeking expert advice from qualified tax professionals.
The CFO is responsible for managing the relationships with our lenders, insurance provider and credit rating agencies, and for the Group’s cash and debt management and financing activities. The CFO provides regular reports to the Board on these activities, including plans to ensure appropriate access to debt capital and monitoring headroom on facilities.
Since the end of the period, the Group have entered into a CVA, a restructuring process which required majority support from the Group’s creditors. The approval of the CVA demonstrates the strong working relationship the Group have with its key suppliers.
Standards of business conduct and impacts on the community and the environment
The Board supports the Group’s strategy with regards to supporting local communities, aiming to reduce adverse impacts on the environment and seeking to maintain the highest standards of business conduct.
This statement has been approved and is fully supported by the Board of Directors.
17th November 2025