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.

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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.

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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.

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