
Crafter’s Companion, a crafting enterprise founded by Sara Davies, faced financial turmoil leading to a pre-pack administration acquisition by entities associated with Modella Capital. The company, known for its paper craft, art, and sewing products, had been grappling with mounting losses attributed to supply chain issues, the loss of a key teleshopping partner, and market focus shifts resulting in deficits in recent financial years.
Sara Davies, who started Crafter’s Companion almost two decades ago in her university bedroom, had to witness her company's revenue dwindling from £38.3 million in 2021 to £29.9 million in 2023 due to various challenges. Despite efforts from Growth Partner, an investment firm supporting the company previously, Crafter’s Companion reached a point where administration and acquisition were necessary for its survival. Modella Capital's acquisition, known for its retail turnaround expertise and ownership of Hobbycraft, provides a lifeline for the crafting company, albeit leaving certain stakeholders facing financial losses.
Following the acquisition, Sara Davies is poised to rejoin Crafter’s Companion as the chief executive, having invested personal funds into the restructured business under Modella Capital's ownership. Davies acknowledged management shortcomings that led to the company's unsustainable debt, expressing hopes for a market recovery under the new stewardship and her renewed active involvement. Despite the controversial nature of pre-pack administrations, where existing debts are often written off, supporters argue that these measures offer failing companies a chance to continue operations, preserve jobs, and salvage some of their value through new ownership.