India’s richest man Mukesh Ambani has bought the iconic British toy store Hamleys for £67million.
Ambani’s Reliance Brands business has secured a deal to buy the world’s oldest toy retailer from Chinese fashion conglomerate C Banner International.
The move brings to an end Hamleys’ four-year spell under the Hong-Kong based firm, which bought it for £100million.
Hamleys, which was founded in 1760, has 167 stores across 18 countries. Reliance already operates 88 Hamleys stores across 29 Indian cities.
In recent years, he has massively expanded his retail portfolio, snapping up a string of well-known brands such as Burberry, Canali, Paul Smith, Armani, Just Cavalli and Jimmy Choo.
Ambani has said he hopes the consumer business wing of his empire will contribute as much to his conglomerate’s earnings as the core energy business by the end of 2028.
He is currently engaged in fierce competition with Amazon and Walmart in an ongoing race to dominate India’s retail market.
The purchase of the much-loved Hamleys will help bolster that fight.
Best known for its enormous flagship store in London – itself a tourist attraction that receives five million visitors a year – Hamleys has been expanding internationally since the mid-2000s.
Reliance already had a franchise agreement for India, running 88 stores in 29 cities, but the purchase now brings him a total of 167 stores in 18 countries.
But while the brand is well-known, Hamleys has struggled. The £68 million ($88 million) price tag is almost half what C.Banner paid previous owner, France’s Groupe Ludendo, in 2015.
In 2017, Hamleys closed a number of loss-making stores in the UK and Ireland, as it started a restructuring programme after posting a £9.2 million pre-tax loss during the year, citing concerns over Brexit.
The acquisition comes after a sale process for the retailer which reportedly also drew interest from Sports Direct owner Mike Ashley, and toy retail chains The Entertainer and Smyths.
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.’
Multi-industry magnate Mukesh made headlines in 2010 when his £768million ($1billion) residence Antilia was unveiled in Mumbai.
The 27-storey abode measures 400,000 square foot, has three helicopter pads, underground parking for 160 cars, and requires some 600 staff to run.
