KB Toys
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| Former type | Private |
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| Industry | Retail |
| Fate | Liquidation |
| Founded | 1922 |
| Defunct | February 9, 2009 |
| Headquarters | Pittsfield, Mass, U.S. |
| Products | Toys, electronics, board games, dolls, and video games |
| Website | http://www.KBToys.com, Forwards to http://www.Toys.com, a subsidiary of http://www.ToysRUs.com |
K·B Toys (previously known as Kay Bee Toys) was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts. K·B Toys was owned by Big Lots and Melville Corporation (CVS) at one time. It was also the second-oldest operating toy retailer in North America (behind FAO Schwarz) before its demise.
Following the company's second bankruptcy in five years, the chain was liquidated beginning in December 2008. The sales were concluded on February 9, 2009.[1] International retailer Toys R Us announced on September 4, 2009 that it had acquired the remains of K·B Toys, comprised mainly of its website, trademarks, and intellectual property rights.[2]
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[edit] Operations
At the time of its liquidation, K·B Toys operated three distinct store formats: K·B Toys, K·B Toy Works, and K·B Toys Outlet (aka Toy Liquidators). K·B Toys stores were mostly found in the company's traditional base of shopping malls, where many of its stores were located for years. K·B Toy Works stores were typically found in outdoor strip malls. K·B Toys Outlet and Toy Liquidators stores, as the name implies, were usually found in outlet centers/malls.
[edit] Financial trouble
Due to increasing competition from national discount chains such as Wal-Mart, Toys R Us, and other discount chains, on January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores.
K·B closed 156 stores on November 8, 2007. The Gordon Brothers Group handled the liquidation of these stores.
On February 9, 2009, K·B closed the remaining stores following the second bankruptcy filing in four years. In addition, K·B Toys' website was closed down.
The K·B Toys brand and related intangible assets were sold by Streambank LLC to Toys R Us on September 4, 2009 for a reported $2.1 Million. Because K·B Toys' 460 stores had been closed and liquidated, the sale applies mainly to the company's logo, website, and trademarks/intellectual properties. Toys R Us remains unsure of how the K·B name will fit into its future business plan.[2]
[edit] References
- ^ Brickley, Peg (December 11, 2008). "K·B Toys Faces Liquidation". Wall Street Journal. Dow Jones & Company. http://online.wsj.com/article/SB122901585422798605.html?mod=googlenews_wsj. Retrieved 2010-01-09.
- ^ a b Pereira, Joseph; John Kell (September 4, 2009). "Toys 'R' Us Buys KB Toys' Brand". Wall Street Journal. Dow Jones & Company. http://online.wsj.com/article/SB125209531190087209.html. Retrieved 2010-01-09.
[edit] External links
- K·B Toys -- Company History FundingUniverse.com, dense overview of business history as of 2006 (~15kb)
- K·B Toys official website
- Toys R Us official website, forwarded to via kbtoys.com
