Dragons’ Den star Sara Davies once again takes over the reins of Crafter’s Companion during a previous pack rescue
Dragons’ Den entrepreneur Sara Davies is to take back control of Crafter’s Companion, the craft supply business she founded, in a swift pre-pack deal.
The company, which gained worldwide fame for its paper, art, and sewing products, filed a notice of intent to appoint administrators in the Supreme Court following declining sales, mounting debt, and mismanagement at its US operations.
Under the proposed restructuring, Davies, 40, will “significantly” increase his shares and return to the role of chief executive, safeguarding around 100 jobs. The exact financial terms have not been disclosed, but his injection of new money is expected to support efforts to refocus on specialized paper work, a niche that made his start-up in a university bedroom in 2006 a multibillion-dollar success story.
The Crafter’s Companion was successful at the time of the shutdown, but suffered major setbacks as inflationary pressures, raw material costs, and challenging retail conditions took their toll. A decline in US sales, including the collapse of a major TV retail partner, exacerbated the losses. Last year, revenue fell by more than a fifth to £29.9 million, deepening the annual loss to £5.1 million.
Despite new shares from Growth Partner and new banking facilities with Santander and HSBC last year, the business is struggling to remain profitable every month. Growth Partner, which was founded by HomeServe founder Richard Harpin, has been a majority shareholder. Its latest decision to file a notice of intent to appoint administrators paves the way for Davies to buy significant portions of the company’s assets as part of a package deal.
Proponents of pre-packaged insolvencies say they allow active businesses to emerge quickly and preserve employment, while critics argue they can undermine unsecured creditors and wipe out debt. Davies acknowledged the dispute but insisted it was important to return the company to profitability and protect jobs.
The deal is expected to be approved by a court this week, after which Davies will focus on “product integrity and product base”, aiming to recapture the paper craft market where his company first found success. He hopes a revamped Crafter’s Companion can regain its former momentum and avoid further layoffs by shedding excess debt and sharpening its product range.
Davies, who became a millionaire within a year of graduating from York University, retired from the day job about a year ago but kept a small stake. Best known for her role in the BBC’s Dragons’ Den from 2019 – when she became the show’s youngest ever writer – she has dabbled in presenting, charity work and even Strictly Come Dancing. Now, returning to Crafter’s Companion, he aims to use his business credentials to bring the business back to life and open up new opportunities for growth.
