Flying Tiger Copenhagen, the Danish discount retailer known for homewares and craft kits, has been acquired by UK private equity firm Modella Capital. The deal marks Modella's first international acquisition, but raises concerns given the firm's reputation for aggressive restructuring.
Modella already owns TG Jones (formerly WH Smith's high street arm), Claire's, The Original Factory Shop, and Hobbycraft. Claire's and The Original Factory Shop collapsed earlier this year with about 2,500 job losses, while Hobbycraft has closed at least nine stores. Modella is currently seeking creditor approval for a plan that could close up to 150 TG Jones stores, including 60 with Post Offices.
Flying Tiger operates around 1,000 stores globally, including 80 in the UK employing over 1,000 people. The chain had been controlled by its banks and management since a buyout in June last year. Modella said it supports the existing management team and its strategy, which includes opening over 700 new franchise stores by 2030.
Joseph Price, Modella's managing director, said: '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.' John Dueholm, Flying Tiger's chair, added: 'We believe Modella Capital is very well placed as the new majority shareholder to support the company's continued development.'
Flying Tiger's UK sales rose 22% to £70.1m in 2024, with pre-tax profits of £2.6m, but debts exceeded £35m. The retailer faces pressure from inflation, rising costs, and competition from discounters like B&M and Home Bargains. The first UK store opened in Basingstoke in 2005, and the brand originated in Copenhagen in the 1980s.
