BBC Dragon Sara Davies MBE is set to step in and rescue Crafter’s Companion after its directors called in administrators.
Davies, who returns for series 22 of Dragons’ Den this Thursday, hopes to save 100 jobs at the Durham firm she founded as student two decades ago.
Crafter’s Companion, which has physical stores in Newton Aycliffe, Chesterfield and Evesham, supplies crafting tools and supplies across the UK, Europe and United States via its website.
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COVID-19 saw eCommerce sales spike as hobbyists sought to take up crafting at home. However a drop in business followed and the company moved into the red.
Growth Partners invested millions last year, installing a new management team as Davies and husband Simon, the co-founder and CEO, stepped back.
The pre-pack insolvency, first reported by The Times, will see the duo – currently minority shareholders – increase their investment, with Sara Davies named CEO.
It is reported that the move could save around 100 jobs.
“During COVID, the business really flourished [but] since then the performance dropped, particularly in the US,” said Sara Davies. “We were really affected by the downturn of a couple of major customers in the US. And being really honest, as a management team, we were just very slow to react.
“The problem we’ve had is the debt structure currently in place in the business meant that it was just impossible to continue to invest in the brand.”
She added to Chronicle Live: “There’s no secret that the company was struggling post-pandemic, and its owners tried to pursue an expansion strategy at a time of real economic uncertainty, which was unfortunately unsuccessful.
“It’s an unprecedentedly difficult time for many retail and consumer businesses. However, looking to the future, we have a new financial structure in place which means we have managed to save the large majority of jobs in the company – and in particular in the North East of England, and ensure that we continue trade as a going concern.
“This means a lot to me. To be going back into the business alongside the fantastic team at Crafter’s Companion is an opportunity I couldn’t pass up. Consumer interest in crafting has never been stronger, and with customers of every age recognising the well-being and mental health benefits of creating beautiful things, I am looking forward to helping drive the strategy of the company again.”