Dragons’ Den star Sara Davies is stepping back in to rescue the business she launched as a student as its directors announced it will be placed it into administration.
Crafter’s Companion was first launched by Ms Davies when she was at York University almost 20 years ago, with a single envelope-making product. It has since grown to become one of the biggest craft businesses in the country, selling crafting tools and supplies across the UK, Europe and the US through its website, as well as physical stores in Newton Aycliffe, Chesterfield and Evesham.
However, the company has struggled since a pandemic home crafting spike, resulting in Growth Partners stepping in last year with a multi-million pound investment aimed at returning the company to better times.
The deal saw a new management team appointed to drive an aggressive growth strategy, while Davies and her CEO husband Simon, who co-founded the company with her, stepped back from day-to-day operations while retaining a minority shareholding and figurehead status.
Crafter’s Companion is now being put into administration by its current directors after the company reached a point where it didn’t have sufficient working capital to continue to operate, with Davies planning on taking advantage of an expected pre-pack deal to rescue what she describes as “my third child,” saving “the large majority” of jobs in the process.
“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 as everyone knows,” said Davies. “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 help drive the strategy of the company again.”
Davies, the youngest Dragon ever to sit on the panel until Steven Bartlett’s arrival in series 19, and her fellow Dragons return to BBC 1 this Thursday in series 23 of the popular entrepreneurial reality show.
