Hamleys toy store sold to India's richest man for £70m

Founded in 1760 and famed for its flagship seven-storey shop on Regent Street; now Mukesh Ambani is aiming to take the brand global

In 2017, Hamleys closed a number of loss-making stores in the UK and Ireland (PA)

Hamleys, the world's oldest toy shop, has been sold to Mukesh Ambani, India's richest man, in a deal worth almost £70m.

Mr Ambani's Reliance Industries bought the famous London retailer from Hong-Kong based fashion conglomerate C Banner International.

Founded in 1760 and famed for its flagship seven-storey shop on Regent Street, Hamley's has now had four owners since being bought off the stock exchange in 2003.

Defunct Icelandic investment group Baugur took Hamley's private before the toy store was bought by France’s Ludendo Groupe and then sold on again to its erstwhile Chinese owners.

Each buyer has struggled to turn Hamleys into a global brand with most success coming in India where 88 of the franchise's 167 stores are located.

Mr Ambani has built up a $50bn fortune through his stake in Reliance Industries which has interests in petroleum and textiles among other businesses. He and his family live in the world's most expensive private residence - apart from Buckingham Palace - the 27-storey Antilia tower in Mumbai.

In 2017, Hamleys closed a number of loss-making stores in the UK and Ireland, as it started a restructuring programme after posting a £9.2m pre-tax loss during the year, citing concerns over Brexit.

The deal will make Hamleys Reliance's first overseas retail brand, expanding its current portfolio which is primarily focused in Indian supermarkets.

President and chief executive of Reliance Brands, Darshan Mehta, said: “This 250-year-old English retailer pioneered the concept of experiential retailing, decades before the concept of creating unique experiences in brick and mortar retailing became the new global norm.

“The worldwide acquisition of the iconic Hamleys brand and business, places Reliance into the frontline of global retail.”