Key Takeaways
- • Modella Capital, a UK-based private equity firm, has acquired Flying Tiger Copenhagen, a Danish retailer operating approximately 1,000 stores globally including 80 UK locations with over 1,000 employees, marking Modella's first international expansion since its 2022 founding.
- • Flying Tiger has been under control of its banks and management since June 2025, when they conducted a management buyout; Modella is backing the existing management team and their expansion strategy targeting 700+ new franchise stores by 2030.
- • The acquisition raises significant concerns about store closures and job losses, given Modella's track record: it is currently seeking creditor approval for restructuring TG Jones (former WH Smith high street arm) with potential closure of up to 150 stores including 60 hosting Post Offices; Claire's and The Original Factory Shop both collapsed in early 2026 under Modella ownership, resulting in approximately 2,500 job losses.
- • Hobbycraft, acquired by Modella in 2024, has already closed at least nine stores through a company voluntary arrangement (CVA) insolvency procedure while renegotiating lease terms on remaining outlets.
- • Joseph Price, Modella's managing director, characterized Flying Tiger as "hugely exciting" with strong brand recognition across 40+ countries and a unique product offering, though the firm's reputation for aggressive restructuring suggests significant operational changes may follow.
Summary
Modella Capital, a UK private equity firm established four years ago, has completed its acquisition of Flying Tiger Copenhagen, the Danish homewares and craft kit retailer. This transaction marks Modella's initial venture outside the United Kingdom and represents a significant strategic move for the four-year-old investment firm. Flying Tiger operates approximately 1,000 stores across more than 40 countries, with 80 locations in the UK employing over 1,000 people.
The company has been under the control of its banks and management since June 2025, when the existing management team executed a buyout. Modella is supporting the incumbent management and endorsing their global expansion strategy, which targets the addition of more than 700 franchise-operated stores by 2030. Joseph Price, Modella's managing director, described the acquisition as "hugely exciting," emphasizing Flying Tiger's strong retail brand and loyal customer base as key attractions.
However, the acquisition has triggered concerns regarding the retailer's operational future given Modella's established reputation for rapid and aggressive restructuring. The firm is currently seeking creditor approval for a restructuring plan affecting TG Jones (the rebranded former high street operations of WH Smith, another Modella-owned asset), which could result in the closure of up to 150 stores—including approximately 60 locations hosting Post Offices—with hundreds of job losses. This pattern extends to other Modella portfolio companies: Claire's and The Original Factory Shop both ceased operations in early 2026, collectively accounting for approximately 2,500 job losses. Additionally, Hobbycraft, which Modella acquired in 2024, has shuttered at least nine stores through a company voluntary arrangement (CVA) insolvency procedure while simultaneously reducing rental obligations on remaining properties.
The acquisition underscores the heightened pressures facing traditional brick-and-mortar retailers and reflects Modella's strategy of acquiring distressed retail assets and implementing significant operational restructuring. Flying Tiger's established brand presence and franchise expansion potential appear to be the primary attractions for Modella, though the firm's execution track record suggests material store closures and workforce reductions may be forthcoming in the coming months.
The company has been under the control of its banks and management since June 2025, when the existing management team executed a buyout. Modella is supporting the incumbent management and endorsing their global expansion strategy, which targets the addition of more than 700 franchise-operated stores by 2030. Joseph Price, Modella's managing director, described the acquisition as "hugely exciting," emphasizing Flying Tiger's strong retail brand and loyal customer base as key attractions.
However, the acquisition has triggered concerns regarding the retailer's operational future given Modella's established reputation for rapid and aggressive restructuring. The firm is currently seeking creditor approval for a restructuring plan affecting TG Jones (the rebranded former high street operations of WH Smith, another Modella-owned asset), which could result in the closure of up to 150 stores—including approximately 60 locations hosting Post Offices—with hundreds of job losses. This pattern extends to other Modella portfolio companies: Claire's and The Original Factory Shop both ceased operations in early 2026, collectively accounting for approximately 2,500 job losses. Additionally, Hobbycraft, which Modella acquired in 2024, has shuttered at least nine stores through a company voluntary arrangement (CVA) insolvency procedure while simultaneously reducing rental obligations on remaining properties.
The acquisition underscores the heightened pressures facing traditional brick-and-mortar retailers and reflects Modella's strategy of acquiring distressed retail assets and implementing significant operational restructuring. Flying Tiger's established brand presence and franchise expansion potential appear to be the primary attractions for Modella, though the firm's execution track record suggests material store closures and workforce reductions may be forthcoming in the coming months.
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