According to Retail Week, the owner of The Toy Store Gulf Greetings has sent a letter of intent to Hamleys showing its interest in acquiring the company.
However, it is also thought that Hamleys owner Ludendo is still also in talks with Chinese conglomerate Sanpower.
The Toy Store has already signed for a 27,000 sq ft property on Oxford Street, a move which would put it in competition with Hamleys. The company also confirmed in September that is was searching for “key locations” in the UK in order to open six new stores over three years.
A spokesperson for Hamleys told Retail Week: “There is always interest in Hamleys but we cannot offer further comment at this stage.”