Ian Ritter is national online editor of GlobeSt.RETAIL.
PITTSFIELD, MA-Mall-based KB Toys is closing between 141 and 238 stores as part of its emergence from Chapter 11, leaving the company with about 600 units. The retailer expects to close the stores by Jan. 31, 2005, pending approval from the US Bankruptcy Court for the District of Delaware.
The company filed for bankruptcy protection in January. KB Toys then closed 389 stores between February and May and an additional 38 from May to August. The company now operates 819 units in the US, Guam and Puerto Rico.
"These store closings represent a significant element of KB Toys plan of reorganization and will not hinder our holiday operations," says Michael L. Glazer, the company's president and CEO. "We remain confident that KB Toys will emerge from this reorganization in a stronger position to compete more effectively in the marketplace." The company expects to emerge from bankruptcy early next year.
KB Toys is not the only toy retailer facing challenges from discounters like Wal-Mart. Earlier this year Toys 'R' Us closed all of its 146 Kids 'R' Us stores and its 36 Imaginarium educational stores. In August company officials said they might seek to sell their global toy business.
Last year, FAO Inc., owner of the famous FAO Schwarz toy chain, sold its flagship New York City and Las Vegas locations and closed its other 13 stores. FAO also liquidated its 89-store Zany Brainy chain and sold its 34 Right Start units.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
