Chinese retailer in talks to buy British toy shop Hamleys (updated)

C banner International Holdings

22/10/2015 17:43

* Footwear retailer C.banner says in advanced talks 
    * Lining up 100 mln stg deal -source 
    * Hamleys is world's oldest toy shop 
    * Potential deal emerges as China's President visits Britain 
 
 (Adds C.banner statement, Hamleys comment, background) 
    By Lawrence White and Sarah Young 
    HONG KONG/LONDON, Oct 22 (Reuters) - Britain's Hamleys, 
where Queen Elizabeth bought toys for her children, is close to 
being bought by a Chinese retailer keen to get its hands on the 
world's oldest toy shop. 
    Hong Kong-listed footwear retailer C.banner International 
Holdings  1028.HK  said in a statement that it was in advanced 
talks to acquire the 255-year-old treasure trove of toys, games 
and candy canes. 
    A source with direct knowledge of the transaction told 
Reuters earlier on Thursday that a 100 million pound ($154.32 
million) deal was due to be announced shortly.  
    The Chinese interest in Hamleys has come to light during 
President Xi Jinping's pomp-laiden visit to London. British 
Prime Minister David Cameron is pitching the UK as the 
pre-eminent Western gateway for investment, hoping to seal deals 
worth $62 billion.  urn:newsml:reuters.com:*:nL8N12J3CH 
    Hamleys is best known for its landmark shop on London's 
Regent Street. The seven-floor toy emporium is a tourist 
attraction in its own right, where children dodge sprays of 
bubbles as they race inside to watch cheery demonstrators fire 
plastic airplanes across the foyer. 
    "If you've grown up in England, this is the big toy shop," 
said Barry Young, 54, who brought his children for a treat after 
they recently moved back to Britain. 
    Discussions between C.banner and France's Ludendo Groupe, 
which has owned Hamleys since buying it in 2012 for a reported 
60 million pounds, will be finalised in the near future, the 
Chinese company said. 
    Hamleys declined to comment and Ludendo did not respond 
immediately to an emailed request for comment. 
     
    BRAND PLANS 
    C.banner, which describes itself as the second-largest 
retailer of middle-to-high-end women's formal and leisure 
footwear in China, said it wanted to use Hamleys to diversify 
its business and leverage the well-known brand. 
    To develop the brand further, C.banner said it was exploring 
options for a potential partnership with British department 
store House of Fraser, which is owned by China's Sanpower Group. 
    Hamleys' very British offering includes the likes of 
Beefeater bears and toy London taxi cabs, though the business 
has been in foreign hands since 2003.  
    It is by no means the only famous British retailer owned by 
overseas investors. Qatar Holdings owns Harrods, Hong Kong-based 
Dickson Concepts  0113.HK  owns Harvey Nichols and Royal tailor 
Gieves & Hawkes is part of Hong Kong-listed Trinity Ltd 
 0891.HK . 
    Hamleys itself has broadened its horizons in recent years 
and plans to open a Moscow store in April to add to the 50-plus 
overseas outlets as far afield as Denmark, India and the United 
Arab Emirates among others. urn:newsml:reuters.com:*:nL6N0WX5PB 
    In Hamley's dolls department, Liz, from Bristol in western  
England, was with her four-year-old daughter. She always pops in 
to the shop when she visits London with her children and said 
she hoped any new owners would keep Hamleys exactly as it is.  
($1 = 0.6480 pounds) 
 
 (Reporting by Lawrence White in Hong Kong and Sarah Young in 
London; Editing by Muralikumar Anantharaman and David Goodman) 
 ((lawrence.white@thomsonreuters.com; +852 2847 2094; Reuters 
Messaging: lawrence.white.thomsonreuters@reuters.net)) 
 
Keywords: C.BANNER HAMLEYS/