Baugur-backed toy retailer Hamleys has issued a statement distancing itself from the Icelandic investor and the Icelandic banking crisis.

The toy retailer said it would like to clarify that it has not had its assets frozen, as has been “inaccurately suggested in the media”.

It reiterated that Hamleys is a “standalone, independent British company".

The company said: "Hamleys has Icelandic shareholders but is a separate legal entity and is not a subsidiary of Baugur. Any change in the ownership structure of shareholders has no direct impact on Hamleys' ability to trade effectively. Hamleys has no current or future funding requirement from its shareholders. Furthermore, Hamleys has no banking, funding or other ties with any Icelandic banks; Hamleys banking is solely with a major UK bank.”

Hamleys added: “Hamleys continues to perform strongly, with positive year-on-year growth, and has exciting expansion plans in place for the future.”

The statement followed Baugur's entanglement in the Icelandic banking crisis.

Arcadia owner Sir Philip Green flew to Iceland last week and has been locked in talks with the Icelandic government and Jóhannesson over a deal enabling the billionaire retail tycoon to take control of Baugur's debt at a discounted price.

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