A high street retailer with around 80 stores across the UK has confirmed its business future following the announcement of a major takeover deal.
Private equity firm Modella Capital has secured ownership of Flying Tiger Copenhagen, adding the Danish discount chain to its expanding retail empire.
The budget retailer operates more than 1,100 stores across 44 countries worldwide, with around 80 of these locations being based in the UK.
Flying Tiger has built its reputation on offering affordable goods spanning stationery, craft supplies, homeware and kitchen products.
High street retailer with 80 UK stores confirms business future in major takeover deal
|GETTY
The chain had been under the control of its lenders and management team following a restructuring process completed last year.
TG Jones owner Modella, which acquired the stationary retailer last year, did not reveal the financial terms of the deal.
Notably, the investment firm is supporting Flying Tiger's ambitions to open more than 700 franchise outlets by the end of the decade.
This latest acquisition cements Modella's position as a significant player in British retail after a slew of corporate takeovers.
High streets have been hit by a wave of closures since the pandemic | PALATEST DEVELOPMENTS
Flying Tiger Copenhagen confirms its takeover by Modella Capital
| GETTYThe firm purchased WH Smith's high street business last year, subsequently rebranding the chain as TG Jones.
Modella has also brought Claire's Accessories and the Original Factory Shop into its portfolio.
The private equity group has rapidly assembled a collection of well-known retail names, though its expansion strategy has attracted scrutiny given the subsequent performance of some acquisitions.
TG Jones currently faces a restructuring proposal requiring creditor approval that could result in as many as 150 store closures.
In March, WH Smith agreed to sell its 480 high street shops to Modella in a £76m deal, ending 233 years of high street history | PAClaire's Accessories was rescued from administration by Modella but subsequently fell into insolvency, leading to the shuttering of every outlet across the UK and Ireland.
The Original Factory Shop entered administration earlier this year.
Despite this troubled backdrop, Modella's managing director Joseph Price described the Flying Tiger purchase as a "hugely exciting opportunity".
He added: "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."