From a County Durham village to the Dragons' Den boardroom, the liquidation of Sara Davies' Crafter's Companion has marked a sad development for one of the North East's most recognisable business figures.
The crafting company, formerly based in Newton Aycliffe, which became a recognisable name among the North East's most successful businesses, announced this month that it would enter liquidation, with all staff being made redundant.
Where did Crafter's Companion begin?
Sara Davies, who was born in Coundon near Bishop Auckland, founded Crafter’s Companion while studying business management at the University of York.
Davies came up with the idea during a work placement at a small craft firm.
Card makers were making handmade cards, but struggled to find envelopes that fitted them.
Davies worked with her father and a local joiner to create The Enveloper, a tool for making bespoke envelopes, launching the product on shopping channel Ideal World and selling 30,000 units in the first six months.
By the time Davies graduated in 2006, Crafter’s Companion was generating £500,000 in revenue.
The business later expanded into cardmaking, die-cutting, papercraft, art, colouring, sewing and needlecraft. Davies described the start of her interest in crafting on her website, writing:
"I grew up surrounded by creative women; my mam did flower arranging, my nana sewed and my gran knitted and crocheted. Crafting practically runs in the family!"
Success, television and royal recognition
Despite the liquidation, Davies said she would continue to "champion North East business" and wait to see what the future holds. (Image: Sara Davies and Helen Goddard)
The company became one of the UK’s biggest craft businesses, selling tools and supplies in more than 40 countries across Europe and the United States.
Despite its international reach, Davies kept the company’s headquarters in Newton Aycliffe, County Durham.
From its North East base, Crafter’s Companion became a familiar name, while Davies received an MBE for services to the economy in 2016 before joining BBC’s Dragons’ Den in 2019.
Her television role made her one of the region’s best-known business figures.
She appeared on the programme until 2025 before choosing to focus on Crafter’s Companion.
Big changes
Crafter’s Companion faced collapse in December 2024. Davies returned to an active role and worked with investment group Modella to keep the firm running and save most of its jobs.
In August 2025, Modella sold its holding to Maven Capital Partners, and Davies had increased her shareholding with the hope that new investment would support growth.
Later that month, she stepped back from day-to-day management and appointed former CBI regional director Diane Sharp as managing director.
Seven employees left in October 2025, followed by seven more in January.
In December 2025, the firm confirmed it would close its St Cuthbert’s Way warehouse after moving 60 per cent of its warehousing and fulfilment work to the United States.
Why is the business now in liquidation?
The company' Newton Aycliffe HQ closed in October, with 42 staff losing their jobs. (Image: SARAH CALDECOTT)
The latest development followed talks to merge Crafter’s Companion with its biggest customer, Gemporia.
Workers were told about the liquidation during a face-to-face meeting with Davies on October 19.
It was confirmed that the trading arm was put into liquidation because the merged operation would no longer need a separate Crafter’s Companion trading company.
The head office in Newton Aycliffe closed immediately, with 42 jobs being lost, as well as a shop in Evesham, near Worcester with 16 jobs lost.
Davies told The Northern Echo that the liquidation affected the trading company, headquarters and retail operation, rather than the brand itself.
The job cuts have prompted concern in from Durham County Council, with Darren Grimes, the county council’s deputy leader, calling the redundancies worrying amid several similar announcements across the county.
Sara, who founded the business while studying at university in 2005, said telling its long-serving workers they were losing their jobs was particularly difficult.
She said she wanted to tell staff personally rather than let them hear about the closure elsewhere.
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The council also pledged to help workers find new jobs.
Despite the sad news of liquidation, Davies said she would continue to "champion North East business" and wait to see what the future holds.
Sara said the Crafter's Companion brand and website would continue.