Flying Tiger snapped up by Modella Capital amid fears for its future

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. …