KB Toys files for bankruptcy

Share this article:
KB Toys, a Prentice Capital Management property, has filed for Chapter 11 bankruptcy protection, as weak holiday sales continue to threaten retailers this year.

This is the second time that KB Toys has filed for bankruptcy in the last four years. The stores will begin running going-out-of business sales at its stores immediately.

The Associated Press reported that the 86-year-old company attributed the bankruptcy to debt from a poor economy, quoting a company statement that said the bankruptcy was “directly attributable to a sudden and sharp decline in consumer sales.”

The toy retailer had been going after consumers with aggressive offers including toys for $10 and a “Buy 2, Get 1 Free” promotion, but the deals were not enough. According to AP, the filing in U.S. Bankruptcy Court in Delaware stated: “KB Toys said that between Oct. 5 and Dec. 8 sales in stores open at least one year, a key retail metric known as same-store sales, fell nearly 20%.”


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

Wine.com Uncorks New Digital Marketing Opportunities

Wine.com Uncorks New Digital Marketing Opportunities

The online wine retailer's strategy incorporates different flavors and depths.

93% of Companies Are Ineffective at Cross-Channel Marketing

93% of Companies Are Ineffective at Cross-Channel Marketing ...

Companies point to a lack of resources as the most common reason for lackluster marketing integration, a study says.

Metal Mulisha Races Towards Customization

Metal Mulisha Races Towards Customization

The motocross apparel company boosts mobile and Web conversions through product recommendations and personalized search.