Hamleys makes £12m loss and says: It’s been one of our toughest years since 1760

TOY store Hamleys has suffered one of its worst years since it was founded in 1760.

The company, which has survived the Industrial Revolution and both World Wars, said last year was among the most difficult in its 258-year history.

Hamleys reported a loss of £12million for 2017, having made profits of £2.6million in 2016.

The company, which has its flagship store on London’s Regent Street, is now being forced to close loss-making stores across the UK.

Chief executive Ralph Cunningham said: ‘Last year was one of the most challenging years in UK retail history. Hamleys was not immune to the impact of Brexit uncertainty, macro-economic pressures, a general erosion in UK consumer confidence and falling customer footfall due to the threat of terrorism.’

The firm said it still had the backing of its Chinese owner C Banner and would continue to open stores in ‘profitable areas’.

Hamleys’ sliding profits were revealed as hairdressing chain Regis, which also owns Supercuts, was forced to go cap in hand to its landlords to secure the future of the business.

The struggling chain is seeking a so-called Company Voluntary Arrangement, which could see rents at some of its 220 salons slashed. Regis said it did not expect any closures or redundancies among its 1,300strong workforce.

UK retailers have been struggling to cope with rising business rates and reduced footfall as more shoppers shift online.

This week, part of clothing chain Coast was rescued by Karen Millen after going into administration.

Its shops will disappear, but concessions will remain in department stores.

The Mail is campaigning to reform sky-high business rates to create a level playing field for shops and online rivals. A typical department store spends £717,952 a year on the tax.

Last week, treasury minister Robert Jenrick said that the issue may be addressed in this month’s Budget.