Modella Capital is set to acquire Flying Tiger Copenhagen, a retailer with around 900 stores globally, including 80 in the UK. The private equity firm is close to reaching an agreement with Danske Bank and Nordea, the owners of Flying Tiger, with a deal expected to be announced soon.
The acquisition is Modella’s latest move on the British high street, following its purchase of Claire’s Accessories, which was later put into administration. Modella also owns a portfolio of former WH Smith stores, now rebranded as TG Jones, which are undergoing a significant restructuring.
Flying Tiger is known for its unique homeware and stationery products, as well as its distinctive store layout, similar to that of Scandinavian retailer Ikea. The company reported a turnover of over 5.2bn Danish krone (£600m) in 2024 and employs thousands of people worldwide.
The deal would see Modella expand its international reach, with Flying Tiger operating in 30 European markets and having franchises in countries such as the Philippines, Vietnam, and Israel. According to the report, financial advisers have been exploring a potential sale since the start of this year. They are seeking to enhance games risks in their portfolio.
Flying Tiger’s history dates back to the 1980s, when founders Lennart and Suzanne Lajboschitz started an umbrella-selling business. The company’s first store was opened in Copenhagen, Denmark, in 1995.
Modella Capital has a track record of acquiring high street retailers, only to offload them soon after. The firm has blamed weak consumer confidence and “adverse government fiscal policies” for its decision to wind down certain businesses, including Original Factory Shop and Claire’s Accessories.
Modella’s chairman, Steve Curtis, is a well-known investor in the retail sector, while its managing director is Joseph Price. The company was formed as Tailer Debtco in 2022, before being renamed Modella a year later, and is owned by Hay Wain Group, the family office founded by turnaround specialist Jamie Constable.
The acquisition of Flying Tiger is expected to be announced imminently, with Modella set to expand its portfolio of high street retailers. However, the firm’s history of offloading businesses soon after purchase has raised questions about its long-term strategy, particularly with regards to its ability to succeed in a competitive market.
According to the report, Modella bought WH Smith’s 480 high street stores for £40m last year, rebranding them as TG Jones. However, the company is now preparing to shut as many as a quarter of these sites in an aggressive overhaul of the business.
Modella claims this move is necessary to save the retailer from bankruptcy, but it has emerged that the company is charging TG Jones millions of pounds for the use of its fictitious brand name. The exact details of the deal are not yet clear, but it is expected to be announced soon, and will likely impact the company’s sales goal.
Modella’s Acquisition History
Modella has acquired several high street retailers in recent years, including Claire’s Accessories and Original Factory Shop. However, the company has also offloaded several businesses soon after purchase, raising questions about its investment strategy.
Flying Tiger’s Business Model
Flying Tiger operates a unique business model, with a focus on quirky homeware and stationery products. The company’s store layout is also distinctive, with a maze-like design similar to that of Ikea.
The company’s financial performance has been strong in recent years, with turnover exceeding 5.2bn Danish krone (£600m) in 2024. However, the retail sector is highly competitive, and Flying Tiger will need to continue to adapt to changing consumer trends to remain successful.
As the deal is expected to be announced soon, it remains to be seen how Modella will integrate Flying Tiger into its portfolio of businesses. However, one thing is clear: the acquisition is a significant move for Modella, and will likely have a major impact on the high street retail sector.
