ONE of the world's most famous toy stores is on the verge of going back into private ownership.

Hamleys confirmed two of its directors were planning a management buy-out (MBO) to take over the Regent Street toy store group.

John Watkinson, chief operating officer, and finance director Ian Parker are heading the buy-out, which could value the group at more than £30m. In a statement to the London Stock Exchange, Hamleys said: "Matters are at a very early stage and this may or may not lead to an offer being made."

Hamleys said a committee of independent directors had been set up to consider any proposal put forward regarding the MBO.