What's happened
Modella Capital has acquired Flying Tiger Copenhagen, backing the Danish chain’s growth plan of more than 700 new franchise stores by 2030 while lenders pursue restructuring that could shutter up to 150 TG Jones stores. The deal broadens Modella’s UK retail footprint after its purchases of Claire’s and The Original Factory Shop, with potential impact on hundreds of jobs.
What's behind the headline?
What this means for UK shoppers and high street retail
- Modella’s acquisition signals a broader push into the discount and value sector, leveraging Flying Tiger’s low-cost, high-variety model to broaden its UK franchise network.
- The deal arrives amid ongoing pressure on high street chains from inflation, business rates, and competition from discount players such as B&M, Home Bargains, and Savers.
- The potential closure of up to 150 TG Jones stores underscores a systemic risk for jobs in towns where a large retail footprint is under review, with creditors being asked to approve these restructurings.
- Expect a period of restructuring-focused announcements and store-level consultations as coverage is aligned with management’s growth plan and lenders’ warrants.
What could happen next
- If creditors approve the restructuring, some UK stores may close; job losses could be announced alongside store rationalisations.
- Flying Tiger stores will continue to be expanded via franchises, potentially offsetting closures with new openings.
- Modella’s strategy may influence other distressed retailers facing similar pressures.
How we got here
Flying Tiger Copenhagen has operated in 40+ countries with about 1,000 stores and was recently under bank-led management. Modella is pursuing a restructuring plan for TG Jones that could close up to 150 stores, including some with Post Offices, while continuing to back Flying Tiger’s expansion. Earlier, Claire’s and The Original Factory Shop collapsed, and Hobbycraft has faced closures under related strategies.
Our analysis
The Independent reports Modella Capital is backing Flying Tiger Copenhagen’s growth plan while pursuing TG Jones creditor restructuring that could close up to 150 stores. The Guardian notes Modella’s track record with Claire’s and The Original Factory Shop and outlines broader sector pressures, including competition and cost pressures. Both sources detail leadership statements from Modella and Flying Tiger executives about stability and growth.
Go deeper
- Will Modella’s expansion come with price changes for Flying Tiger products?
- How many Flying Tiger franchises are planned by 2030 and where will they be located?
- What will be the impact on UK jobs if store closures proceed?