New Owners Plan U.S., Japan Operations : Swank British Toy Shop Sold for $36.5 Million

Hamleys, the swank British toy shop that has enchanted children and their parents for more than two centuries, has been sold, and its new owners plan to expand operations to the United States and Japan.

British conglomerate Lowndes Queensway PLC said today that it had agreed to sell the store located on London’s elegant Regent Street to Larchwood Ltd. of Britain for $36.5 million.

Hamleys’ customers include Britain’s Royal Family, the Sultan of Brunei and pop star Michael Jackson, who last year emerged from the shop with a radio-controlled toy truck.

The shop was put up for sale last September, and some analysts said then that it could fetch up to $66 million.

Larchwood, headed by brothers Tim and Duncan Chadwick, was formed as a toy-retailing company to incorporate Hamleys and Creative Toys Inc. of Beverly Hills, Calif.

The Creative Toys operation is expected to be a springboard for expanding North American sales while marketing is stepped up in continental Europe and Japan.

Hamleys has been a part of London life since Cornishman William Hamley set up shop in 1760 selling rag dolls, tin soldiers, hoops and wooden horses.

Cricket bats, footballs and model boats were introduced during the 19th Century.

Modern Hamleys’ stock now includes big cuddly bears for $1,300 and a gasoline-driven miniature London taxi for $11,600.

Lowndes acquired Hamleys, where children can choose from 25,000 different toys, in August last year when it took over its parent Harris Queensway PLC.

Lowndes Chairman James Gulliver said his company will now concentrate on its carpet and furniture business.