Crafter’s Companion, the crafting business Sara Davies founded as a university student, has told customers it wants to see the brand “have a future” after the company that ran it entered liquidation with the loss of 58 jobs.
The update follows the disclosure last week that the Newton Aycliffe-based business would merge with Gemporia, its biggest customer.
As part of the rescue package, the trading arm of Crafter’s Companion was put into liquidation because it no longer needs trading operations of its own. Its store and head office closed with immediate effect, with 42 jobs lost at the Newton Aycliffe office and 16 in store.
The Crafter’s Companion brand name and its website are not part of the liquidation and will continue to trade as normal. Davies will remain closely associated with the business.
In its latest statement, Crafter’s Companion described the past week as “incredibly difficult”, adding: “We know there’s been a lot of worry and uncertainty, particularly around outstanding orders and what happens next.”
The company confirmed that the directors of Cedarcrest Global Trading Limited, which has been responsible for running Crafter’s Companion, had taken the decision to place it into liquidation. Under government guidance on liquidating a limited company, a company in liquidation stops doing business and employing people, and its assets are used to pay off its debts.
“It’s a heartbreaking situation, particularly for the wonderful people who have worked so hard for the business. We do, however, want to share some hope for the future,” the statement said.
“Crafter’s Companion is so much more than a trading company. It’s a brand built over many years, with an incredible community of crafters at its heart. The brand itself is owned separately, and its future is now being carefully considered. There are still things that need to be worked through before we can share what that future might look like.”
The company said customers would have questions about orders, the website and upcoming events, and that it would share confirmed information as soon as it was able.
“What hasn’t changed is how much this community means to us, and how much we want to see Crafter’s Companion have a future,” it said. “Thank you for your patience, your kindness and for continuing to support each other. It means more than you know.”
Davies said: “The agreement with Gemporia means that Crafter’s Companion will continue to operate and our loyal customers can continue to be part of our community. It’s no secret that I have a strong emotional attachment to the brand which I founded when I was still a student and I am pleased that it will still exist and that I will still be involved in the brand’s future after a couple of turbulent years.”
She added: “Losing staff who have worked so hard for the business is a terrible thing on a personal level, but we really had no choice. I met the staff individually to explain that this was the only realistic way to rescue the business. Once the merger with Gemporia is completed, our hope is to establish an office in the North East and that the business will continue to be closely associated with the region that I call home.”
Last year Davies rescued Crafter’s Companion from administration after its directors at the time had reached a point where they did not have sufficient working capital to continue.
In that pre-pack administration deal, the business was bought for £425,000 by entities controlled by Modella Capital, with 134 of 148 jobs preserved, Business Matters reported in January 2025. Davies invested personal funds and organised a financial restructuring.
She temporarily became chief executive before stepping back into an advisory position. At the time, she told Business Matters: “Crafter’s is not just a business to me. It’s my passion.”
Davies, who appeared on Dragons’ Den between 2019 and 2025, has since taken a stake in Not On The High Street and joined the online marketplace’s board.
Jamie Young
Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the 'covid era' and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine's coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk
