KB Toys files for bankruptcy
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%.”