Sports Direct boss Mike Ashley and The Entertainer, a privately owned UK toy chain, are among a pack of suitors lodging their interest in a takeover of Hamleys.
The retailers have told advisers to C.banner International, the current owner of the world's most famous toy shop, that they are considering bids for the business.
Smyths, the Irish toy chain, is also said to have expressed an initial interest in making an offer.
Formal bids for Hamleys are not due until after Christmas, reflecting the importance of the festive trading season to the company's fortunes.
Ashley last week warned that November had been the worst on record for the high street and predicted a flurry of retail bankruptcies, and berated Debenhams - in which Sports Direct is the largest shareholder - for refusing to accept the offer of a £40m loan.
Hong Kong-listed C.banner, which paid about £100m for Hamleys three years ago, is said to want about £90m for the company, which reported a multimillion pound annual loss in October.
If a deal does take place, it would be Hamleys' fourth change of ownership in 15 years, following a succession of largely failed attempts by a range of international shareholders to expand the renowned brand globally.
Hamleys' business comprises 129 stores globally, of which roughly 100 are operated under franchise.
Founded in 1760, Hamleys is one of the most famous retailing names in the world, having occupied its current site on London's Regent Street since 1881.
In 2003, the company was taken off the London stock market by Baugur Group, the Icelandic investor which snapped up a string of big high street names in the decade before the financial crisis.
Baugur paid £47.4m for Hamleys, which was then sold in 2012 for £60m to Groupe Ludendo, a French company, by the winding-up committee of the failed Icelandic bank Landsbanki.
C.banner's takeover of the business in 2015 was timed to coincide with a state visit to the UK by the country's president, Xi Jinping, and was described by both countries as a sign of deepening economic ties.
Since then, Hamleys has opened a 115,000 sq ft store in Beijing in a ceremony overseen by Britain's ambassador to China.
The retailer now has a presence in countries including Germany, India, Russia and Ukraine.
However, in October Hamleys Global Holdings, the parent company, reported a pre-tax loss of £12m for 2017, citing "market pressures including currency effects".
The accounts added that trading was on an improving trajectory, with 2.7% UK like-for-like sales growth in the first eight months of 2018 and was "on track to return to net profitability in the next 12 months".
Vermilion Partners, a corporate finance firm with offices in Beijing, Shanghai and London, is overseeing discussions with potential bidders.
RPA Perspective While companies circle Hamleys, The Entertainer has stepped up its expansion in mainland Europe with the acquisition of Spanish toy retailer Poly. The new acquisition will add to the toy retailer’s global footprint, which also aims to reclaim Poly’s 5% Spanish market share.
As part of the acquisition, all 57 Poly stores will remain open and more than 350 jobs retained. Poly was acquired through a competitive bid that was managed by an administrator. It has stores in shopping centres and high streets across Spain.
“This year has understandably been incredibly turbulent for the Poly team as they faced so much uncertainty, and we look forward to welcoming them to The Entertainer family,” The Entertainer executive chairman Gary Grant said. “The Poly brand will be retained but aligned with The Entertainer’s core values, which put our people and our customers at the very heart of our business.
“Our immediate focus is to work with our suppliers to ensure that all 57 stores are stocked for the remainder of the festive trading period. This will include the introduction of the full range of products from our sister company Addo, which will offer Spanish consumers excellent quality at affordable prices.”
Prior to acquiring Poly, The Entertainer operated more than 30 stores overseas in Europe, Middle East, Africa, and Asia. The new acquisition means it will now have a store estate of around 300 in the UK and overseas.
