A popular high street retailer with 80 stores across Britain could soon be bought by the private equity firm behind TG Jones. Flying Tiger Copenhagen, known for its colourful homeware, gifts, toys and stationery, is reportedly close to being taken over by Modella Capital. The London-based investment firm is understood to be nearing a deal with the retailer's current owners, Danske Bank and Nordea.

City sources have suggested an announcement could be made imminently, GB News reports. If completed, the deal would place around 900 Flying Tiger stores worldwide under Modella's control, including its UK estate. The takeover would also give Modella access to the retailer's franchise partnerships in countries including Israel, Vietnam and the Philippines.

Flying Tiger operates in nearly 30 countries through a mix of owned stores and franchise agreements. In 2024, the retailer generated revenues of 5.2 billion Danish krone, which is around £600 million, and employs thousands of people globally, including hundreds in the UK.

Modella has expanded rapidly across the British retail sector in recent years. The firm bought WH Smith's high street business in 2025 before rebranding it as TG Jones. It has also acquired Hobbycraft and The Original Factory Shop. Last year, Modella took control of Claire's Accessories, which later entered administration for a second time.

The company's retail investments have faced pressure amid difficult trading conditions on the high street. Claire's Accessories and The Original Factory Shop have both entered administration in recent months, leading to hundreds of job losses.

TG Jones is also going through a major restructuring process, with Modella seeking rent reductions and the closure of up to 150 former WH Smith stores. The restructuring plan, which requires High Court approval, could put hundreds more jobs at risk.

TG Jones boss Alex Willson has described the former WHSmith high street chain as "almost completely broken", the Financial Times reports.

Modella has argued the measures are needed to prevent the chain from collapsing and has pledged to invest millions into a turnaround strategy if the proposal is approved.

A Modella Capital spokesman said: "We don't comment on market speculation."

Flying Tiger was founded in Copenhagen in the 1980s by Lennart and Suz Lajboschitz, who initially sold umbrellas at a flea market.

Its first permanent shop opened in 1995, with every item originally sold for 10 Danish krone.

The retailer underwent a major financial restructuring in early 2025, which included a £160million capital injection.

Flying Tiger was previously owned by Treville & Co before being taken over by a group including former executives and the banks Danske Bank and Nordea after the restructuring.