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Al Jazeera English1 min read
Flying Tiger snapped up by Modella Capital amid fears for its future
TL;DR
Modella Capital has acquired Flying Tiger, raising concerns about the retailer's future. This marks Modella's first acquisition outside the UK, following a series of store closures and job losses at its other brands.
Key points
- Modella Capital acquires Flying Tiger
- Flying Tiger operates about 1,000 stores worldwide
- Modella's first acquisition outside the UK
- Concerns over future restructuring and store closures
- Previous retailers under Modella faced significant job losses
Mentioned in this story
Modella CapitalFlying TigerTG JonesClaire’sThe Original Factory ShopHobbycraft
Flying Tiger is the latest retailer to be snapped up by Modella Capital, the British investment firm which already owns the former high street arm of WH Smith, now called TG Jones.
The Danish company, known for its cut-price homewares and craft kit, operates about 1,000 stores worldwide, including 80 in the UK, where it employs more than 1,000 people.
For the past year it has been controlled by its banks and management, which bought out the company in June.
The acquisition will be Modella’s first foray outside the UK, but is likely to raise fears about the future of Flying Tiger as the private equity firm, set up four years ago, has quickly gained a reputation for rapid and hard-nosed restructuring. It is currently asking creditors of TG Jones to approve a restructuring plan that could see up to 150 stores close, including up to 60 hosting Post Offices, with the loss of hundreds of jobs.
Two other high street retailers under its ownership, Claire’s and The Original Factory Shop, both collapsed earlier this year, with the loss of about 2,500 jobs. Hobbycraft, the specialist retailer Modella bought in 2024, has also closed at least nine stores through an insolvency procedure known as a company voluntary arrangement, which also reduce rents on some outlets.
Modella is backing Flying Tiger’s existing management team along with their strategy, which includes global expansion via more than 700 new franchise stores by 2030.
Joseph Price, managing director of Modella, said: “Flying Tiger Copenhagen is a hugely exciting opportunity for Modella Capital. With its strong retail brand, and a unique product offering that has built a loyal customer base across more than 40 countries, Flying Tiger Copenhagen is a business with tremendous potential. We are pleased to be investing in its future, and we look forward to working closely with the management team to provide the stability, capital and retail expertise the business needs to fulfil its growth plan.”
John Dueholm, chair of Flying Tiger Copenhagen, said: “Flying Tiger Copenhagen has made strong progress in recent years.
“Throughout the process, we have been focused on finding the right long-term owner for the business, and we believe Modella Capital is very well placed as the new majority shareholder to support the company’s continued development.”
Q&A
What is the significance of Modella Capital acquiring Flying Tiger?
The acquisition signifies Modella's expansion outside the UK and raises concerns about potential restructuring and store closures at Flying Tiger.
How many stores does Flying Tiger operate worldwide?
Flying Tiger operates about 1,000 stores worldwide, including 80 in the UK.
What has happened to other retailers owned by Modella Capital?
Other retailers owned by Modella, such as Claire’s and The Original Factory Shop, collapsed earlier this year, resulting in the loss of about 2,500 jobs.
What restructuring plans are currently in place for TG Jones?
Modella is seeking creditor approval for a restructuring plan that could lead to the closure of up to 150 TG Jones stores, impacting hundreds of jobs.
