Flying Tiger Copenhagen is on the brink of being taken over in a move that would impact around 900 stores globally, including approximately 80 shops in the United Kingdom. The Danish retailer, known for its Scandi-style budget-friendly products such as homeware, stationery, and toys, is currently owned by Danske Bank and Nordea. According to a report by The Times, private equity fund Modella Capital is poised to acquire the company, with city sources indicating that a deal could be announced imminently.
Background and Financial Performance
The potential acquisition comes after financial advisers were reportedly appointed earlier this year to explore options for the business, including a sale. In its latest financial results, Flying Tiger reported a "record-breaking" performance for 2024, with revenues reaching DKK 5.2 billion. The company has been a prominent player in the affordable retail sector, offering a wide range of products that appeal to cost-conscious consumers.
Modella Capital's Previous Retail Ventures
Modella Capital made headlines last year when it took control of the majority of WH Smith's high street stores, converting them into the TG Jones brand. WH Smith retained its more profitable travel locations, such as those in airports and train stations, which continue to operate under the WH Smith brand. Modella's involvement in the retail sector has been significant, and its acquisition of Flying Tiger would further expand its portfolio.
Impact on Claire's and Russell & Bromley
In related retail news, administrators for Claire's, which was previously owned by Modella, announced the closure of all 154 of its high street shops across the UK and Ireland. This move resulted in approximately 1,300 job losses, though the retailer's 356 concessions, including many in Asda stores, and its head office remain unaffected. Claire's, known for its jewellery, clothing accessories, and ear-piercing services, was founded in the US and launched in the UK in 1996.
On a more positive note, luxury shoe chain Russell & Bromley has returned to the UK high street after being rescued from administration earlier this year. Next acquired the brand and intellectual property for £2.5 million, along with a portion of its stock for £1.3 million. The deal included only three Russell & Bromley stores in Chelsea, Mayfair, and Bluewater in Kent, leading to the closure of the remaining 33 branches. However, the Richmond store has since reopened under Next's ownership. Russell & Bromley was founded in 1880 by George Bromley and Elizabeth Russell in Eastbourne and currently employs over 450 people, now run by Andrew Bromley.
