Modella Capital has acquired Flying Tiger, a Danish retailer operating about 1,000 stores worldwide, including 80 in the UK. The company had been controlled by banks and management, which bought it out in June. Modella’s acquisition is its first outside the UK and raises concerns due to a reputation for rapid restructuring. Modella is asking creditors to approve a plan that could close up to 150 stores, including up to 60 with Post Offices, with hundreds of job losses. Other Modella-owned retailers have collapsed, and Hobbycraft has closed stores through a company voluntary arrangement that can reduce rents. Modella is backing existing management and a strategy to expand globally through more than 700 new franchise stores by 2030.
"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. Joseph Price, managing director of Modella, said: "Flying Tiger Copenhagen is a hugely exciting opportunity for Modella Capital. With its strong retail brand, and a unique product offering that has built a loyal customer base across more than 40 countries, Flying Tiger Copenhagen is a business with tremendous potential. We are pleased to be investing in its future, and we look forward to working closely with the management team to provide the stability, capital and retail expertise the business needs to fulfil its growth plan.""
#retail-acquisitions #private-equity-restructuring #store-closures #franchise-expansion #uk-retail-employment
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