KB Toys to Close 375 Stores, Cut 3,500 Jobs

Share this article:
About 3,500 positions will be eliminated by KB Toys Inc. as the company -- just two weeks after its bankruptcy filing -- said yesterday that it will close at least 375 stores as part of its restructuring.


KB Toys said it is restructuring to address challenges created mainly "by the price war during the 2003 holiday season, mass merchants' increasing use of toys as loss leaders during the holiday season and increasing price competition in the toy market during the remainder of the year."


The Pittsfield, MA, company will continue operating more than 750 stores in the United States, Puerto Rico and Guam.


KB Toys also said it received approval from U.S. Bankruptcy Court for the District of Delaware to engage The Ozer Group LLC, The Nassi Group LLC and SB Capital Group LLC to conduct store-closing inventory sales for at least 356 stores starting today. By Feb. 11, another 19 to 115 stores will be identified for closing. KB Toys expects to sell up to $122.5 million of inventory via the store-closing process.


Its current level of employment is about 12,000 positions.


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

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.

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.