The retailer’s profits fell last year after its new Chinese owners spent approximately £1m on fees during its takeover.
Chinese footwear retailer, C.Banner International, acquired Hamleys in a £100m deal last October. Recently filed accounts for Hamleys reveal pre-tax profits tumbled from £1.7m to £761,000 last year, while sales dropped from £68m to £56.6m.
C.Banner’s chairman, Chen Yixi, is thought to have family links to Yuan Yafei, who bought an 89% stake House of Fraser in 2014. Earlier this year, the two Chinese retailers were said to be discussing swapping shares in Hamleys and House of Fraser, but so far the pair have only reached an agreement about toy concessions in department stores.
Hamleys chief executive, Gudjon Reynisson, recently said that the end of China’s one-child policy presented an opportunity for toy stores and he wanted 100 shops across the country.
Hamleys is said to now be looking to the east to grow. Next year, the retailer’s international stores will leave its London flagship “in the dust,” according to Gudjon.