Flying Tiger snapped up by Modella Capital amid fears for its future
Summary
Modella Capital, a British investment firm, has bought Flying Tiger, a Danish retailer with around 1,000 stores worldwide. The firm has a history of restructuring stores it buys, causing job losses and store closures, raising concerns about Flying Tiger’s future.Key Facts
- Flying Tiger sells affordable homewares and craft kits and has about 80 stores in the UK.
- Modella Capital already owns TG Jones (formerly part of WH Smith), Claire’s, The Original Factory Shop, and Hobbycraft.
- Claire’s and The Original Factory Shop collapsed earlier this year with around 2,500 job losses.
- Modella plans to support Flying Tiger’s growth, including opening 700 new franchise stores globally by 2030.
- Flying Tiger’s UK sales rose 22% to £70.1 million in 2024 but it has over £35 million in debt.
- The retail sector faces challenges from inflation, rising costs, and strong competition from other discount retailers.
- The company was controlled by its banks and management since a buyout in June 2023.
- Flying Tiger was founded in the 1980s and opened its first UK store in 2005.
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