Hamleys back up for sale

Hamleys for sale: Investors are toying with the idea

Hamleys, one of the world's most famous toy shops, is for sale - again.

As recently as July this year, Hamleys said takeover talks, which industry sources said were with a venture capital company, had ended.

Big toy for sale

"We have retained [the investment bank] Close Brothers to explore a number of options for the future of the company, including a possible sale or other transaction," executive chairman Simon Burke said.

"We are not able to say whether any offer is likely to be forthcoming," he added.

However, talks with prospective buyers have reportedly started.

Hamleys' asking price is reportedly edging upwards to £40m, in excess of its current market value of less than £30m.

Expensive fun

Hamleys, which is best known for its seven-floor shop in Regent Street in London, is no stranger to the charge of overpricing.

Some critics have claimed that Hamleys' toys cost substantially more than identical toys in other shops.

Traditionally, such charges have been rebutted by the toy seller which says the Hamleys experience cannot be compared to other shops.

Indeed, as many as 60% of the 30,000 to 40,000 people who enter the shop during the run-up to Christmas are sightseers rather than shoppers.

But in January this year, Hamleys broke with tradition and held the first sale in its 240-year history.

That followed last year's £2.6m loss.

Performance improved to a meagre £9,000 pre-tax profit in the six months ending on 23 September.

Hamleys blamed flat sales in a depressed toy market, a fall in the number of tourists coming to London, and on the refitting work at its Regent Street shop for its poor performance.