FLYING TIGER: Firm behind former WHSmith store closure plans set to buy quirky Danish chain — we reveal what this could mean for Swansea and Carmarthen

Quirky Scandinavian brand Flying Tiger Copenhagen looks set to come under the ownership of a private equity firm that has presided over the recent collapse of several other well-known retail brands.

Modella Capital is closing in on a deal to buy the Danish variety retailer — including its two south-west Wales outlets in Swansea and Carmarthen.

The deal — first reported by The Times and tipped to be announced imminently — would add Flying Tiger’s 900 global stores to Modella’s growing portfolio. It would also expand the firm’s already substantial local footprint, with a Hobbycraft store at the Swansea West retail park in Fforestfach already in the portfolio, alongside TGJones outlets it inherited from WHSmith last year.

Who are Modella?

Modella Capital is a London-based private equity firm that has rapidly built up a portfolio of well-known British high street chains in recent years.

Its biggest acquisition was the £40 million purchase of WHSmith’s 480-store high street business in 2025, which it has since rebranded as TGJones.

Modella also owns Hobbycraft, and previously bought Claire’s Accessories and The Original Factory Shop — both of which subsequently fell into administration, resulting in hundreds of job losses.

The firm, which is chaired by retail investor Steve Curtis and run by managing director Joseph Price, operates as part of the wider Hay Wain Group — a family office led by financier Jamie Constable.

A track record of restructuring and closure

The Flying Tiger deal comes as Modella faces mounting questions over its existing retail empire.

The firm is currently pursuing a major restructuring of TGJones that, if approved by the High Court, would see up to 150 stores closed and steep rent reductions imposed on landlords at remaining sites. Modella has warned that without court approval by the end of June, the chain will go into administration.

Up to seven TGJones stores in south-west Wales are caught up in that restructuring process. The firm has already faced controversy locally after WHSmith refused to fund redundancy payments at the chain amid threats of bailiff action and tax debts.

The new TGJones chief executive, Alex Willson, who took over in April, has been openly critical of the chain’s previous management. He has described the business as having suffered a “slow death” under WHSmith ownership and said he found stores missing lightbulbs and ceiling tiles, threadbare carpets, and lifts and escalators that did not work.

Modella has pledged to invest millions of pounds in a turnaround plan if its restructuring proposal is approved by the court — and would be blocked from taking dividends from the business during the period landlords’ terms are reduced.

What this could mean for Swansea

In Swansea, Flying Tiger trades from a unit on Princess Way, in the heart of the city centre’s retail quarter.

The store sits in the same block as the newly opened Søstrene Grene store — another Danish variety retailer offering a similar product range that opened earlier this month in the former Zara unit just yards from Flying Tiger.

That puts two competing Scandinavian homeware brands within metres of one another on the same street — a direct competitive overlap that under different ownership models might not have lasted.

The same block also faces other changes. Directly across Princess Way sits Swansea Council’s recently opened Y Storfa community hub, in the former BHS unit on the corner with Oxford Street.

Next door to Y Storfa on Oxford Street, the flagship Marks & Spencer store is set to close on Saturday 30 May, ending decades of trading at the site. And just along Princess Way at the Quadrant Shopping Centre, the former Debenhams unit is expected to see new tenants announced shortly.

What this could mean for Carmarthen

For Carmarthen, the implications of any Modella restructuring of Flying Tiger could be more acute.

Flying Tiger trades from a unit at St Catherine’s Walk — the shopping centre that opened in 2010 with Debenhams as its flagship anchor store and which once promised to make Carmarthen the dominant shopping destination west of Swansea.

But since 2020, St Catherine’s Walk has seen a steady haemorrhage of national chains, including Topshop, Topman, Miss Selfridge, River Island, Debenhams, H&M, Joules, Monsoon, Accessorize, Fat Face and Burger King — leaving an increasingly thinned-out retail offer that has been bolstered in recent years by independent traders.

The closed Debenhams store at the centre of the shopping development meanwhile sits empty awaiting conversion into a new town centre hub called Atriwm, an opening now pushed back to 2027 following Carmarthenshire Council’s £146 million capital plan.

Flying Tiger has been one of the centre’s remaining sources of footfall — a popular destination for shoppers seeking affordable gifts, homeware and stationery in a familiar, branded environment.

The “fictitious brand” controversy

The Flying Tiger deal also lands at a moment of fresh scrutiny over Modella’s operating model.

Earlier this month, The Guardian revealed that Modella is charging TGJones millions of pounds for the use of the TGJones brand name itself — a brand the firm created when it bought WHSmith’s high street business and rebranded the stores.

Modella has defended its track record by blaming “adverse government fiscal policies” and weak consumer confidence for the difficulties facing its existing retail businesses. The firm has previously said it acquires retailers in need of “significant investment” with the aim of returning them to sustainable growth, while accepting that it “won’t win every battle”.

What Flying Tiger says

Flying Tiger Copenhagen itself is a Danish-founded variety retailer best known for its colourful homeware, stationery, arts and crafts supplies, toys, gifts and party goods — typically priced at the lower end of the high street and laid out in maze-like store designs that guide customers through the entire shop floor before reaching the tills.

The brand traces its origins to a Copenhagen flea market in the 1980s, where founders Lennart and Suz Lajboschitz began selling umbrellas. The first permanent store opened in the Danish capital in 1995, with every item originally priced at 10 Danish krone.

The chain reported turnover of 5.2 billion Danish krone — around £600 million — in 2024, and employs thousands of staff globally across 30 European markets and franchise partners in the Philippines, Vietnam and Israel.

The retailer underwent a major financial restructuring in early 2025 which put control in the hands of a coalition including former chief executive Martin Jermiin, finance chief Christian Kofoed Hertz Jakobsen, and banks Danske Bank and Nordea. Jens Aarup Mikkelsen took over as chief executive in February.

What happens next

Modella has so far declined to comment on what it describes as “market speculation” about the Flying Tiger deal.

For shoppers in Swansea and Carmarthen, the takeover does not — on current information — point to any immediate change in trading at either store. Flying Tiger has been performing strongly enough at a global level to attract a substantial private equity buyer.

But what comes after a Modella takeover at any of its previous acquisitions has been less reassuring. With the TGJones restructuring still working its way through the courts, the recent administrations of Claire’s and The Original Factory Shop, and the firm’s existing Hobbycraft outlet at Fforestfach already in the portfolio, the ownership change is one shoppers in both towns will want to watch closely.

Related stories from Swansea Bay News

Seven south-west Wales TGJones stores at risk as chain announces 150 closures
Our coverage of Modella’s planned TGJones restructuring and its local impact.

WHSmith sells high street stores which will be renamed TGJones
When the rebrand was first announced.

Scandinavian homeware brand Søstrene Grene to open Swansea city centre store
The Danish variety retailer that opened next door to Flying Tiger in Swansea.

Carmarthen’s old Debenhams reborn as Atriwm — but opening pushed back to 2027
The slow-moving redevelopment of the former Debenhams anchor at St Catherine’s Walk.

TGJONES: New Deputy First Minister raises alarm over Neath Post Office threat as she writes to chain over closure risk

Wales’s newly-appointed Deputy First Minister has written to TGJones demanding answers about the future of its Neath store — warning that its closure would put a Post Office counter used by some of the town’s most vulnerable residents at risk.

Sioned Williams, Plaid Cymru MS for Brycheiniog Tawe Nedd, wrote to the chain on 12 May raising concerns about the impact of the proposed restructuring on communities in her constituency, where both the Neath and Brecon branches have been rumoured to be among those at risk.

The Neath TGJones store currently hosts a Post Office counter — a service that Williams said raises concerns not just about the variety of shops in the town centre, but about continued access to basic services for residents, especially older people and those with limited mobility or access to transport.

In a Facebook post accompanying the letter, Williams said: “I am concerned to hear that the Post Office in Neath may be at risk given the proposed closure of TGJones stores across Wales — where the Neath Post Office currently sits.”

She added that any loss of the sites would raise concerns not only about retail provision, but about access to basic services for residents who depend on them.

The letter, addressed to TGJones management, asks the chain to clarify whether any Welsh stores are currently under active consideration for closure or subject to landlord negotiations, how community impact and service dependency are being assessed when decisions about store viability are made, and what engagement has taken place — or is planned — with Post Office Ltd, local authorities, or other stakeholders where stores host essential services.

Williams also called for alternatives to full closure — including relocation, service-only retention, or partnership approaches — to be explored in locations where the loss of a store could significantly affect a town centre.

The intervention comes as seven TGJones branches across south-west Wales face an uncertain future — including the Swansea Quadrant, Neath, Llanelli, Carmarthen, Bridgend, Tenby and Haverfordwest — after owner Modella Capital announced plans to close up to 150 stores nationally as part of a major restructuring.

The financial picture facing the chain is bleak. Documents circulated to creditors revealed that TGJones owes £8.4 million to HMRC, with a six-month payment agreement struck in April — and a further £3.4 million in business rates arrears, with bailiffs reported to be a real threat if payments are not maintained.

WH Smith, which sold its 480 high street stores to Modella Capital in March 2025 before they were rebranded as TGJones, has separately refused to fund enhanced redundancy payments for staff who could lose their jobs.

The restructuring requires approval from a High Court judge, with a hearing expected in late June. Landlords are likely to face demands for severe rent reductions, and those who refuse could simply have their stores handed back to them.

Post Office has previously said it will update communities if any of its services hosted within TGJones stores are forced to relocate as a result of the closures — but has given no guarantees that services would remain in the same towns.

Williams’s letter represents the most senior political intervention in the TGJones crisis in Wales to date. She was this week named Deputy First Minister in Wales’s first ever Plaid Cymru government — notably, the letter was written on 12 May, the day before the cabinet was announced.

The High Court hearing in late June remains the key date for staff and communities across south-west Wales with an interest in the future of the affected stores.

The Neath branch is one of three TGJones stores in south-west Wales known to host a Post Office counter — the Swansea Quadrant and Carmarthen branches also provide the service. Post Office Ltd has previously pledged to update communities if any hosted services are forced to relocate, but has given no guarantee that alternative provision would remain in the same town.

Our TGJones coverage

Seven south-west Wales stores at risk as chain announces 150 closures
The full list of at-risk branches across the region.

Bailiff threat and tax debts cast fresh doubt over south-west Wales stores
TGJones owes £8.4m to HMRC and faces a bailiff threat as WH Smith refuses to fund redundancy.

Post Office promises to update communities if any branches are forced to relocate
What the closures could mean for Post Office services hosted within TGJones stores.

WH Smith sells high street stores — which will be renamed TGJones
How the chain ended up in Modella Capital’s hands in the first place.

The Guardian | How new owner became all powerful in ‘high stakes’ attempt to revive former WH Smith chain by Sarah Butler

AI generated summary, Read the full article for complete information.

The former WH Smith high‑street chain, bought by the low‑profile investment group Modella Capital last summer, was quickly rebranded as TG Jones and is now facing a sweeping restructure that could see up to 150 of its 450 stores shut and thousands of jobs lost. Modella, which now acts as creditor, landlord and brand owner, is set to acquire the business—including its Swindon headquarters—for no more than £20 million plus the assumption of its debts, a fraction of the £76 million valuation originally announced. Only £10 million of that has been paid, with the remainder tied to trading performance and the realisation of tax assets expected to be worth about £8 million. The firm has also provided a £10 million loan to TG Jones at 12 % interest, supplemented by an Aurelius rescue loan that could rise to £40 million, while royalty fees on the TG Jones brand are being waived on a no‑cash basis. If the creditor‑approved plan is adopted by the end of June, rent and royalty obligations will be restructured, but Modella’s position behind Aurelius in any insolvency leaves its ability to recover debts uncertain, highlighting a high‑stakes test for the investor as it attempts to revive a once‑iconic retailer.

Read more: https://www.theguardian.com/business/2026/may/13/wh-smith-new-owner-modella-tg-jones-stores-jobs

#WHSmith #ModellaCapital #Aurelius #privateequity #retailindustry

TGJONES: Bailiff threat and tax debts cast fresh doubt over south-west Wales stores as WH Smith refuses to fund redundancy payments

The seven TGJones stores at risk across south-west Wales face fresh uncertainty after new details emerged about the dire financial state of the chain — including millions of pounds in unpaid taxes and a looming threat of bailiff action.

Seven branches in the region — including the Swansea Quadrant, Neath, Llanelli, Carmarthen, Bridgend, Tenby and Haverfordwest — were put at risk last week when owner Modella Capital announced plans to close up to 150 stores nationally as part of a major restructuring.

Now documents circulated to creditors have revealed that TGJones owes £8.4 million to HMRC, with a six-month payment agreement struck in April — and a further £3.4 million in business rates arrears. The Telegraph has reported that bailiffs are now a real threat if those payments are not maintained.

The revelations paint a stark picture of a business that has deteriorated rapidly since WH Smith sold its 480 high street stores to Modella Capital in March 2025 and rebranded them as TGJones.

The sale was originally valued at £76 million, but this was renegotiated sharply downward to £42 million to reflect what was described at the time as a “sharp deterioration in trading conditions.” In reality, WH Smith received just £10 million upfront, with the remaining £32 million contingent on the business’s future cash flows — money that now looks unlikely ever to materialise.

Modella has since approached WH Smith to ask whether it would fund enhanced redundancy payments for staff likely to lose their jobs if stores close. WH Smith had previously offered staff a more generous redundancy scheme than the statutory minimum. It declined to provide any further support.

The development is significant for workers at the seven south-west Wales branches, who now face the prospect of statutory redundancy only if their stores are among those confirmed for closure.

The restructuring Modella is planning is known as a “cram-down” — a relatively novel legal mechanism that requires the consent of only one class of creditors to proceed, rather than a majority. It will require approval from a High Court judge, with a hearing expected in late June.

Landlords are likely to face demands for severe reductions in rent as part of the plan. Those who refuse could simply take back the keys to their stores.

If the restructuring is approved, Modella has promised to invest £35 million in a turnaround plan it claims would return TGJones to profitability, with what it describes as a “considerable investment” in the stores that survive.

The creditor documents also reveal the existence of a mystery private individual — described as not being linked to Modella — who is owed £8 million by TGJones. No further details have been disclosed.

The crisis comes as Modella’s track record with other retail brands comes under scrutiny. Both The Original Factory Shop and Claire’s Accessories — two other chains acquired by the firm — have been placed into administration in recent months. Modella blamed the worsening conditions on the British high street and tax rises enacted by the Government.

An insolvency specialist quoted in earlier reporting warned that the pipeline of retail closures was “far from over,” pointing to the collapse in discretionary spending, stubbornly low high street footfall outside major city centres, and the impact of rising National Living Wage costs and higher employer National Insurance contributions.

Post Office has previously said it will update communities if any of its services — hosted within TGJones stores — are forced to relocate as a result of the closures.

The High Court hearing in late June is now the key date for anyone with an interest in the future of the south-west Wales stores — and for the staff who work in them.

Our TGJones coverage

Seven south-west Wales stores at risk as chain announces 150 closures
The full list of at-risk branches across the region.

Post Office promises to update communities if any branches are forced to relocate
What the closures could mean for Post Office services hosted within TGJones stores.

WH Smith sells high street stores — which will be renamed TGJones
How the chain ended up in Modella Capital’s hands in the first place.

TGJONES: Post Office promises to update communities if any branches are forced to relocate amid TGJones store closures

Post Office customers in south-west Wales who use services located inside their local TGJones have been reassured that they will continue to be able to do so – for now.

The statement comes after Swansea Bay News reported yesterday that up to 150 TGJones stores across the UK are facing closure under restructuring plans announced by the chain’s owner, Modella Capital.

Seven stores across south-west Wales are among those potentially affected, including the Quadrant Shopping Centre branch in Swansea and stores in Neath, Llanelli, Bridgend, Carmarthen, Tenby and Haverfordwest.

But many of those branches host an in-store Post Office – and readers immediately raised concerns about what would happen to those vital local services if the parent shops close.

Several readers contacted Swansea Bay News following the original report.

“They can’t possibly get rid of a post office. It serves as a bank for some people,” wrote one reader.

Others raised specific concerns about the Neath branch on Wind Street.

“Skewen has one post office, but we used to have three years ago,” said another reader. “Losing Neath post office would be unacceptable.”

“There’ll be no post office in Neath centre,” said another.

In response to these concerns, Swansea Bay News asked the Post Office press office to clarify the future of in-store branches if their TGJones host stores were to close.

A Post Office spokesperson said the network recognised the difficult conditions facing high street retailers, and confirmed it had no immediate plans to change services.

“We fully recognise the challenging trading conditions that TGJones and many other High Street retailers are facing at the moment,” the spokesperson said.

“We have a long-standing partnership and encourage customers to continue to access Post Office services and products from our branches located within TGJones stores.”

The Post Office said it would commit to keeping local communities informed of any future changes.

“Should there be any change to the store that hosts the Post Office, we will inform the local community as soon as we’re able to,” the spokesperson added.

The Post Office network operates more than 11,500 branches across the UK – many of them inside other businesses including newsagents, supermarkets and convenience stores.

The model has long been used to keep Post Office services accessible in towns and high streets where standalone branches would not be commercially viable.

But the model also creates a vulnerability – when the host business gets into difficulty, the Post Office service can be at risk too.

The Post Office’s statement will reassure customers that, for now, services will continue as normal at TGJones-hosted branches across south-west Wales.

But the position will become clearer once Modella Capital announces which specific TGJones stores will be closed under its restructuring plans – a decision that has not yet been made public.

The Post Office has confirmed the network has not been told which stores will close.

For now, customers in Swansea, Neath, Llanelli, Bridgend, Carmarthen, Tenby and Haverfordwest can continue to use their local in-store Post Office as normal.

Modella Capital, which also owns Hobbycraft and previously owned the now-collapsed Claire’s chain, is expected to confirm the full list of TGJones store closures in the coming weeks.

TGJONES: Seven south-west Wales stores at risk as chain announces 150 closures

Seven TGJones stores across south-west Wales are facing the chop.

Up to 150 stores nationwide are set to close under a major restructuring plan announced by the chain’s owner – with hundreds of jobs at risk.

The stores affected by the decision include some of the most familiar names on south-west Wales high streets:

• The Quadrant Shopping Centre, Swansea
• Wind Street, Neath
• Parc Trostre Retail Park, Llanelli
• The Rhiw, Bridgend
• Guildhall Square, Carmarthen
• High Street, Tenby
• Riverside Quay, Haverfordwest

It has not yet been confirmed which individual stores will close.

But the announcement leaves staff at all seven branches facing a nervous wait.

The chain – formerly WHSmith – operates 480 high street stores nationally, with 26 of them in Wales.

Private equity owner Modella Capital said the restructuring was an “essential part” of the company’s turnaround plan.

The firm bought the WHSmith high street business in March 2025 – a £40 million deal that did not include the WHSmith brand itself.

Stores were quickly rebranded under the new TGJones name – a name with no prior public recognition.

Modella Capital is now blaming that “forced” rebrand for damaging consumer awareness.

A spokesperson said the decision to close stores had not been taken lightly.

“While we continue to believe in the strength of the core business, TGJones has experienced highly challenging trading conditions over the past year, along with many other brick-and-mortar retailers,” they said.

The company also blamed rising operating costs “as a direct result of government policy” and recent “geopolitical events.”

“The restructuring plan is designed to protect the substantial core of the store estate and create a stronger, more sustainable business that can continue to serve customers for years to come,” the spokesperson added.

Modella Capital said no final decisions had yet been made about the impact on staff, and the company was aiming to preserve “as many jobs as possible.”

“We want to be clear, however, that the plan may result in the closure of some stores and the loss of some roles,” the spokesperson said.

The TGJones restructure comes hot on the heels of another high-profile Modella Capital collapse.

The private equity firm shut all 154 UK and Ireland Claire’s stores last month – putting around 1,300 staff out of work.

Modella Capital placed Claire’s into administration after what it called an “alarmingly” low Christmas trading period.

It has now committed more than £35 million for the TGJones restructuring effort.

For Swansea shoppers, the timing is grim.

The Quadrant store sits within a shopping centre already undergoing significant change. The Quadrant’s former Debenhams anchor unit was bought by Swansea Council after the chain’s collapse, stripped out, and recently sold to the centre’s new owners Centurion Group, with three major new tenants expected to be confirmed.

And Swansea’s flagship Marks & Spencer store on Oxford Street is due to close on 30 May – meaning the city centre will lose yet another major retailer in the same month TGJones announces its restructuring.

The Carmarthen store on Guildhall Square is similarly prominent in the town’s main retail area, while the Neath, Llanelli, Bridgend, Tenby and Haverfordwest branches all anchor parts of their respective high streets.

The full list of which TGJones stores will close is expected to be confirmed in the coming weeks.

High street Post Offices to shut forever as 100 TG Jones stores closed

https://fed.brid.gy/r/https://www.mirror.co.uk/news/uk-news/post-office-tg-jones-closure-37115599