An online crafts retailer which saw sales boom during COVID-19 lockdowns is exploring a cut-price sale.
Sky News understands that Lovecrafts, which is chaired by the media veteran Sir Peter Bazalgette, is working with Interpath Advisory on a sale.
Founded in 2012, Lovecrafts is backed by leading growth investors including Highland Ventures, Balderton Capital and Scottish Equity Partners.
City sources said it was likely to be valued at “a knockdown price” if it was able to secure a deal with a buyer.
Keep up with all the latest news from the UK and around the world by following Sky News
Lovecrafts grew especially quickly during the pandemic, with Britain’s series of lockdowns prompting large numbers of consumers to take up hobbies such as knitting and sewing.
Growth has stalled since then, however, with its main shareholders said to be unwilling to inject more money into the business.
Second-round bids for the company are said to be due later this week.
Money blog: M&S loses ‘grocer of year’ crown – as big four rival claims title for first time in 20 years
More than £232m paid in compensation for HS2 line that will never be built
The critical cog in Putin’s machine and how British firms help to keep Russian gas flowing into Europe
Read more from Sky News:
Huge cost of HS2 line that will never be built
Biden says he ‘nearly fell asleep’ during TV debate
Uncomfortable truth behind end of cost of living crisis
Be the first to get Breaking News
Install the Sky News app for free
Sir Peter, who became chairman in 2018, is a former chairman of ITV and one of the most prominent figures in the media industry.
In 2021, Lovecrafts raised nearly £16m, adding to funding it had secured since its launch.
Lovecrafts could not be reached for comment, while Interpath declined to comment.