Developing Hamleys toy stores and Cookhouse Ideas4Retail points in the Russian Federation, where 90% are owned by Alexander Mamut, is up for sale. Analysts estimate Hamleys’s Russian business up to 1 billion rubles, but warn that the search for buyers for such an asset may be delayed, including due to the limited segment of premium-class children's products.
The fact that the owners of Ideas4Retail, which is developing Hamleys toy stores and Cookhouse kitchenware outlets in Russia, has begun searching for buyers for the entire business, the company’s presentation for potential investors says. Kommersant has a copy of the document. As stated in the presentation, 90% of Ideas4Retail belongs to A&NN Investments of Alexander Mamut (takes 42nd place in the Forbes ranking with a fortune of $ 2.5 billion) and the Lynwood Group. Another 10% of the company is owned by the structure of St. Petersburg Winnie Group of Companies (which sells children's clothes and shoes Armani, Kenzo, Moschino) of DTC Vinni LLC by Artem Kagramanov.
Ideas4Retail owns exclusive rights to develop Hamleys in Russia. In total, the network includes over 200 stores worldwide, owned by Indian businessman Mukesh Abani. In Russia, Hamleys operates nine stores in Moscow, St. Petersburg and Sochi with a total area of more than 21.5 thousand square meters. m. Flagship in the Central Children's Store (TsDM) - the largest toy store in the country and the largest facility in the entire network. As stated in the presentation of Ideas4Retail, in 2019 the Hamleys network in Russia received 1.78 billion rubles. revenue and 199 million rubles. EBITDA before royalty payments, etc. In 2020, indicators should grow to 1.62 billion rubles. and 258 million rubles. respectively.
Cookhouse is its own brand Ideas4Retail, under which there are eight stores in Moscow and St. Petersburg. This year the network should receive 198 million rubles. revenue and 48 million rubles. EBITDA loss. In 2020, the turnover of Cookhouse may grow to 249 million rubles., And the loss on EBITDA - to decrease to 11 million rubles., The presentation says. A&NN Executive Director Nadezhda Ermakova was unable to promptly answer questions from Kommersant. Ideas4Retail also did not provide a comment on Tuesday.
As follows from the presentation of Ideas4Retail, the owners of the company prefer to sell the entire business to one buyer, but are ready to consider buying each of the networks separately. Peregrine Capital managing partner Nikolai Gabyshev doubts that Hamleys and Cookhouse will be able to be sold to one strategic investor: “These are too different concepts.” Mr. Gabyshev estimates the possible cost of Hamleys at 4–5 EBITDA (0.8–1 billion rubles before royalties). Based on financial results, the Cookhouse business is difficult to evaluate, he added.
Alexander Mamut, businessman, in an interview with the Dozhd TV channel, 2013Alexander Mamut, businessman, in an interview with the Dozhd TV channel, 2013
There are things that should be a business that should pay off
Hamleys’s business in Russia has previously encountered difficulties. In 2018, a number of contractors filed suits against the network company for nearly 80 million rubles.
The flagship assortment at the Central House of Companies was reduced several times, and Kommersant sources in the real estate market assumed that Hamleys would close its largest store (see Kommersant on March 13, 2018). Nikolay Gabyshev notes: the premium segment of children's goods in Russia today can hardly be widely represented outside Moscow and St. Petersburg, and in these cities it can be limited to tourist centers. As stated in the presentation of Ideas4Retail, the annual turnover of the Russian market for children's goods, 20% of which is controlled by Detsky Mir, is now estimated at 503 billion rubles.
The fact that Hamleys will interest one of the profile players, Kommersant sources in the market doubt it. The same "Children's World" today is focused on improving its own efficiency, sales density from 1 quarter. m and the development of the online channel, says Aton senior analyst Viktor Dima. According to him, a new premium brand in such conditions can only complicate the group’s economy.
Since at least mid-2018, Vladimir Yevtushenkov, the main owner of Detsky Mir AFK Sistema, has also been looking for buyers for its 52.1% of the company. Among the applicants were the structures of Senator Suleiman Kerimov and the Safmar group Mikhail Gutseriev. But the negotiations were not successful. Last week, it became known that Sistema and the Russian-Chinese Investment Fund are selling 23.7% of Detsky Mir on the stock exchange for 15.92 billion rubles. Given how long Sistema has been trying to sell its stake in Detsky Mir, the search for a buyer on Hamleys can also be delayed, warns Victor Dima.
The fact that the owners of Ideas4Retail, which is developing Hamleys toy stores and Cookhouse kitchenware outlets in Russia, has begun searching for buyers for the entire business, the company’s presentation for potential investors says. Kommersant has a copy of the document. As stated in the presentation, 90% of Ideas4Retail belongs to A&NN Investments of Alexander Mamut (takes 42nd place in the Forbes ranking with a fortune of $ 2.5 billion) and the Lynwood Group. Another 10% of the company is owned by the structure of St. Petersburg Winnie Group of Companies (which sells children's clothes and shoes Armani, Kenzo, Moschino) of DTC Vinni LLC by Artem Kagramanov.
Ideas4Retail owns exclusive rights to develop Hamleys in Russia. In total, the network includes over 200 stores worldwide, owned by Indian businessman Mukesh Abani. In Russia, Hamleys operates nine stores in Moscow, St. Petersburg and Sochi with a total area of more than 21.5 thousand square meters. m. Flagship in the Central Children's Store (TsDM) - the largest toy store in the country and the largest facility in the entire network. As stated in the presentation of Ideas4Retail, in 2019 the Hamleys network in Russia received 1.78 billion rubles. revenue and 199 million rubles. EBITDA before royalty payments, etc. In 2020, indicators should grow to 1.62 billion rubles. and 258 million rubles. respectively.
Cookhouse is its own brand Ideas4Retail, under which there are eight stores in Moscow and St. Petersburg. This year the network should receive 198 million rubles. revenue and 48 million rubles. EBITDA loss. In 2020, the turnover of Cookhouse may grow to 249 million rubles., And the loss on EBITDA - to decrease to 11 million rubles., The presentation says. A&NN Executive Director Nadezhda Ermakova was unable to promptly answer questions from Kommersant. Ideas4Retail also did not provide a comment on Tuesday.
As follows from the presentation of Ideas4Retail, the owners of the company prefer to sell the entire business to one buyer, but are ready to consider buying each of the networks separately. Peregrine Capital managing partner Nikolai Gabyshev doubts that Hamleys and Cookhouse will be able to be sold to one strategic investor: “These are too different concepts.” Mr. Gabyshev estimates the possible cost of Hamleys at 4–5 EBITDA (0.8–1 billion rubles before royalties). Based on financial results, the Cookhouse business is difficult to evaluate, he added.
Alexander Mamut, businessman, in an interview with the Dozhd TV channel, 2013Alexander Mamut, businessman, in an interview with the Dozhd TV channel, 2013
There are things that should be a business that should pay off
Hamleys’s business in Russia has previously encountered difficulties. In 2018, a number of contractors filed suits against the network company for nearly 80 million rubles.
The flagship assortment at the Central House of Companies was reduced several times, and Kommersant sources in the real estate market assumed that Hamleys would close its largest store (see Kommersant on March 13, 2018). Nikolay Gabyshev notes: the premium segment of children's goods in Russia today can hardly be widely represented outside Moscow and St. Petersburg, and in these cities it can be limited to tourist centers. As stated in the presentation of Ideas4Retail, the annual turnover of the Russian market for children's goods, 20% of which is controlled by Detsky Mir, is now estimated at 503 billion rubles.
The fact that Hamleys will interest one of the profile players, Kommersant sources in the market doubt it. The same "Children's World" today is focused on improving its own efficiency, sales density from 1 quarter. m and the development of the online channel, says Aton senior analyst Viktor Dima. According to him, a new premium brand in such conditions can only complicate the group’s economy.
Since at least mid-2018, Vladimir Yevtushenkov, the main owner of Detsky Mir AFK Sistema, has also been looking for buyers for its 52.1% of the company. Among the applicants were the structures of Senator Suleiman Kerimov and the Safmar group Mikhail Gutseriev. But the negotiations were not successful. Last week, it became known that Sistema and the Russian-Chinese Investment Fund are selling 23.7% of Detsky Mir on the stock exchange for 15.92 billion rubles. Given how long Sistema has been trying to sell its stake in Detsky Mir, the search for a buyer on Hamleys can also be delayed, warns Victor Dima.
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