Flying Tiger Copenhagen, the Danish discount retailer known for its homewares and craft kits, has been acquired by UK private equity firm Modella Capital. The deal, which covers approximately 1,000 stores worldwide including 80 in the UK, raises concerns about potential restructuring and store closures.
Modella Capital has a reputation for aggressive cost-cutting. The firm is currently seeking creditor approval to close up to 150 stores of TG Jones (formerly WH Smith's high street arm), including up to 60 Post Office outlets. Two other Modella-owned retailers, Claire's and The Original Factory Shop, collapsed earlier this year with about 2,500 job losses. Hobbycraft, also owned by Modella, has closed at least nine stores via a company voluntary arrangement.
Despite these concerns, Modella has stated it will support Flying Tiger's existing management and growth strategy, which includes opening over 700 new franchise stores globally by 2030. Joseph Price, Modella's managing director, said the chain has "tremendous potential" and that the firm will provide "stability, capital and retail expertise."
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 acquisition is Modella's first outside the UK.
