Moneyweb reports that Ensolor, franchise operator of world-famous toy retailer Hamleys South Africa is in financial trouble and has been put into business rescue.  

Several retail property sources have indicated that the company’s financial difficulties are linked to fraud.  Cape Town based Ensolor’s financial woes have already resulted in the closure of one of its biggest Hamleys stores, located at the Mall of Africa shopping centre in Waterfall City, Midrand.  Another smaller Hamleys store at Nelson Mandela Square in Sandton has also closed up shop.  More store closures could be on the cards, resulting in a further blow for some of SA’s larger shopping centres, already under strain from weak economic conditions as well as Edcon’s downsizing and possible closure.  Following the closure of the two stores, Hamleys now has eight stores in major SA shopping centres.  Questioned on the likelihood of the business rescue process to succeeding, business rescue practitioner Stefan Steyn said:  “We hope that it is very likely and we are working hard to achieve a positive result.  We are fortunate to have the co-operation and support of many stakeholders, including staff, management and creditors.  Fortunately, it [Hamleys] is a great brand, and it continues to trade, and is well stocked.”  

• Read the full original of Suren Naidoo’s report on this story at Moneyweb

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