KB Toys files for bankruptcy again

Posted Dec 11th 2008 5:05PM by Zac Bissonnette
Filed under: Bad News

With the economy wreaking havoc on consumer spending, KB Toys has filed for bankruptcy for the second time in four years. The 80-year old company based in Pittsfield, Massachusetts, operates 460 stores and reported total debt between $100 million and $500 million, with total assets in the same range.

Things must be really bad: Most toy stores do as much as 50% of their sales in the weeks leading up to Christmas, but apparently KB didn't even think it could hang on and try for a Christmas miracle to save the company.

Prentice Capital Management LP bought the company out of bankruptcy in 2005 but, this time around, the plan is an outright liquidation. The going out of business sales are set to start immediately, with the company hoping to take advantage of the holiday season to liquidate its inventory.

If you're in the market for Christmas gifts for kids, it might be worth stopping by the corpse of the latest victim of the retail meltdown.

Tags: inthenews, KB Toys, KbToys

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Reader Comments (Page 1 of 1)

12-12-2008 @ 5:36PM

Peter said...

Dear Zac,
In our society and these troubling times it is understandable that someone must report the bad news, however I find it nauseating that you suggest that "you stop by the corpse of the latest victim".
I admit being a former employee makes me more sensitive to the issue than most, but we are talking about close to 10,000 people who are losing their jobs. In this case I know some of them and your reference seems like another case of sensationalist journalism that just makes the bad news sting a little more.