The Birmingham Post has reported that the outlet in the House of Fraser store, which opened in March 2007 will shut on April 18th. Much of its stock is being sold at discounted rates prior to the closure.
A spokesperson for the retailer explained: "Hamleys last year successfully opened three large format stand alone stores in Dundrum, Jordan and Dubai with further plans to open and continue with this format expansion globally.
"Such is the confidence in the success of the first three outlets that we have decided that our strategy going forward is to solely concentrate our business model on 'big-box' stores rather than concessions. Only with large format stores we can deliver the magic, theatre and entertainment that are the core of our brand.
"Therefore, strategically we have made the decision to close our small format concessions located in selected House of Fraser stores as they are not able to replicate the theatre and scale that Hamleys requires. The stores will close on the 22nd April, apart from Belfast which will remain open until September."
Icelandic firm Baugur last month announced it would file for bankruptcy. Its UK arm, BG Holdings – which owns stakes in UK retailers such as Hamleys, Iceland and House of Fraser – was already in administration.
Following this news, Hamleys issued a statement, reiterating its independence and insisting the news would have no impact on its trading whatsoever.
Administrators at PricewaterhouseCoopers are trying to sell Baugur’s interests in Hamleys as well as its 34 per cent stake in House of Fraser.