Hamleys owners facing legal probe

THE new Icelandic owners of Hamleys toy shop will come under fresh scrutiny tomorrow over allegations involving escort girls and a party on a Florida yacht.

Tryggvi Jonsson, former president of Icelandic retailer Baugur, is due to testify in Miami about events on the yacht, Thee Viking. Chief executive Jon Asgeir Johannesson is said to have tried to pay $19,260 (£12,500) for escort girls using a Baugur credit card.

Also giving a statement to lawyers tomorrow will be Sigurdur Einarsson, chairman of Iceland's biggest bank Kaupthing, who was also said to have attended the party on December 1, 2001.

Kaupthing backed Jon Asgeir Johannesson and his family in their recent move to take Baugur into private ownership.

The executives are due to give evidence to the law firm representing Jon Sullenberger, a former business partner and one-time friend of Johannesson.

Sullenberger fell out with Johannesson after claiming there was a conspiracy to siphon money out of Baugur to buy Thee Viking.

This and the escort girl allegations have plunged Baugur into scandal just as it was making a name for itself in Britain. As well as buying the prestigious Hamleys in London's Regent Street, Baugur has taken significant stakes in Selfridges, House of Fraser and Big Food Group.

Financial Mail has seen copies of a fax purporting to be from a Fort Lauderdale company called South Florida Entertainment (Miami Beach Escorts) to Sullenberger. The fax asks Sullenberger to prompt Johannesson to pay a $19,260 bill.

A number of UK executives have been entertained by Johannesson and Sullenberger on the yacht, including fashion designer Karen Millen and her business partner Kevin Stanford, though none is linked to the party scandal.

Police in Iceland have been investigating the fraud claims since last August and have contacted the FBI. Financial Mail traced Sullenberger to his export company, Nordica, based near Miami International Airport, but he declined to comment.

Baugur dismissed Sullenberger's allegations, describing him as 'a disgruntled former business partner whom we are suing'.