The Chinese owner of House of Fraser is mulling the sale of a stake in the business, two years after buying it for £480m.
Sanpower Group’s chairman Yuan Yafei is in discussions with Chinese footwear retailer C.banner International – the owner of British toy store Hamleys – about a potential sale. C.banner is run by Yuan’s brother-in-law, Chen Yixi.
In a statement to the Hong Kong Stock Exchange, C.banner said it was planning to open China’s first Hamleys store in September. It will be in the House of Fraser flagship in Nanjing, near Shanghai, which will be called Oriental Fraser.
The alliance “may eventually lead to an acquisition” of a stake in House of Fraser from Nanjing Xinjiekou, a subsidiary of Sanpower, said C.banner.
However, it added: “No agreement has been reached in respect of the acquisition of an interest.”