Modella Capital, which bought WHSmith’s high street arm last year and rebranded it as TG Jones, is closing in on a takeover of Flying Tiger Copenhagen, in a deal that would add around 900 stores to the private equity firm’s growing retail empire.

The investment fund is understood to be close to reaching an agreement with Flying Tiger’s owners, Danske Bank and Nordea.

A deal could be announced imminently, according to The Times.

Flying Tiger, known for its low-priced Scandi-style homeware, stationery, toys and quirky gifts, operates around 900 stores globally, including 80 in the UK.

The retailer runs stores across almost 30 European markets and also works with franchise partners in countries including the Philippines, Vietnam and Israel.

A takeover would significantly expand Modella’s international footprint and add another well-known retail name to its portfolio.

Flying Tiger reported turnover of 5.2bn Danish krone, around £600m, in 2024, and employs thousands of people worldwide.

The retailer has been owned by a group including former chief executive Martin Jermiin, finance boss Christian Kofoed Hertz Jakobsen, Danske Bank and Nordea since early 2025, following a capital restructuring.

It was previously owned by investment firm Treville & Co.

Financial advisers were reportedly appointed earlier this year to explore options for the business, including a sale.

Jens Aarup Mikkelsen was appointed chief executive in February, replacing Jermiin, who remained on the board.

Flying Tiger traces its roots back to the 1980s, when founders Lennart and Suz Lajboschitz began selling umbrellas at a Copenhagen flea market. Its first retail store opened in the Danish capital in 1995, with every product priced at 10 Danish krone.

The potential deal would mark the latest acquisition by Modella, which has bought a string of high street retailers in recent years, including Hobbycraft, Claire’s, The Original Factory Shop and WHSmith’s former high street estate.

However, the firm has come under scrutiny after Claire’s and The Original Factory Shop fell into administration, leading to hundreds of job losses.

Modella has blamed tough trading conditions and tax rises introduced by the Labour government for the pressure facing retailers.

The firm is also preparing a major restructuring of TG Jones, with steep rent cuts and dozens of store closures expected if the plans are approved by the High Court.

Modella has argued the restructuring is needed to save the former WHSmith high street business from bankruptcy after a difficult year.

It has said it will invest millions of pounds into a turnaround plan if the proposals are approved, while being blocked from taking dividends during the period in which landlords’ terms are reduced.

Modella is led by chairman Steve Curtis and managing director Joseph Price. It is part of the Hay Wain private equity group, which is run by financier Jamie Constable.

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