KB Toys Couldn’t Hang On

In news that unfortunately shocks no one, KB Toys has filed for bankruptcy and plans to close all of its 460 stores.

The mall-based chain, which filed for bankruptcy earlier this decade, isn’t even waiting for the holiday season to end. It is starting its liquidation sales immediately, according to a Reuters report.

One thing we don’t understand about the situation is KB’s bankruptcy filing in which management states it has between $100 million and $500 million in assets. Isn’t that kind of a wide range?

We thought most of this news would start after the holiday season, but it seems that KB couldn’t hold out. Any predictions of more mass closures before the holidays end?


3 Responses to “KB Toys Couldn’t Hang On”

  1. 1 E December 12, 2008 at 1:31 pm

    Regrettable news, but smart move by KB. It’ll invariably drive more “going out of business” traffic to their stores now, because everybody knows there’s no “tomorrow” for the chain.

    This move helps them reduce their debt load immediately, i.e. more money there’ll be less haggling with liquidators re inventory, merchandise disposition. Any landlords reading the financial news knew KB was on the brink, so I’m sure everybody’s lawyer’ed-up and reviewing covenants to see what the possibilities are.

    The employees? God help them, anyone, thrown into the pool now.

  2. 2 Boston Broker December 12, 2008 at 3:12 pm

    That is a rare store that I will actually miss. Its not quite the same thing as the few local places of my youth that were the reward destination to trump all others, but that has been the option during my own kids’ childhoods. I don’t think it will be quite as memorable for parents to say, for instance, “I’m really proud of you for winning the spelling bee; let’s go online to buy you a toy at Amazon.com.”

  3. 3 Mall Owner. December 15, 2008 at 9:54 am

    Thank you Mitt Romney and your friends at Bain Capital. Were it not for your predatory raid on a viable retailer that was much admired, but not financially manipulative and aggressive, the Company would have continued in existance with sufficient capital and equity. Once you performed your “financial engineering” to withdraw all the equity for your ownn benefit, KB’s fate was sealed. Good thing you were not given the opportunity to do the same for the United States.

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