Private equity firm Modella Capital is close to securing control of Flying Tiger Copenhagen in a deal for the retailer's 80 British stores, alongside hundreds more across Europe.
The London-based investment firm is understood to be nearing a final agreement with Flying Tiger's current owners, Danske Bank and Nordea.
City sources said an announcement on the transaction could be made imminently.
If completed, the takeover would place approximately 900 Flying Tiger Copenhagen stores worldwide under Modella's control, The Times reported.
The acquisition would also give the private equity group access to the retailer's franchise partnerships in Israel, Vietnam and the Philippines.
Flying Tiger Copenhagen has become a familiar name on British high streets through its Scandinavian-inspired homewares, gifts and low-cost stationery ranges.
Flying Tiger Copenhagen nears takeover by Modella Capital
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The retailer is also known for its maze-style store layouts which guide customers through the entire shop floor before reaching tills.
In 2024, the business generated revenues of 5.2 billion Danish krone, equivalent to around £600million.
The chain employs thousands of workers globally, including hundreds across its UK operations.
Flying Tiger was founded in Copenhagen during the 1980s by Lennart and Suz Lajboschitz, who initially sold umbrellas at a flea market in the Danish capital.
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An an announcement on the transaction could be made imminently
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The company's first permanent shop opened in 1995 and originally sold every item for 10 Danish krone.
The retailer underwent a major financial restructuring in early 2025 which included a £160million capital injection.
Modella has rapidly expanded its retail portfolio in Britain through a series of high-profile acquisitions in recent years.
The firm acquired WH Smith's high street business in 2025 before rebranding the chain as TG Jones.
It has also purchased Hobbycraft and discount retailer The Original Factory Shop.
Last year, Modella took control of Claire's Accessories before the retailer later entered administration for a second time.
The investment firm is chaired by retail investor Steve Curtis, while Joseph Price serves as managing director.
Modella operates as part of the wider Hay Wain private equity group led by financier Jamie Constable.
The firm's recent retail investments have faced mounting financial pressure amid difficult trading conditions on the high street.
Both Claire's Accessories and The Original Factory Shop have entered administration in recent months, resulting in hundreds of job losses.
Modella has blamed higher taxes introduced by the Labour Government alongside wider pressures facing retailers.
The firm's TG Jones business is also facing a significant restructuring process.
Modella is currently pursuing a plan that would involve major rent reductions and the closure of up to 150 stores across the former WH Smith estate.
The restructuring proposal, which requires High Court approval, could place hundreds of jobs at risk.
Modella has argued the measures are necessary to prevent the TG Jones chain from collapsing completely.
The company has pledged to invest millions of pounds into a turnaround strategy if the restructuring plan is approved.
A Modella Capital spokesman said: "We don't comment on market speculation".
GB News has contacted Nordea and Danske Bank for comment.