Bankruptcy

Retailer KB Toys, With Several Georgia Locations, Files Chapter 11 In Delaware After Drop In Sales

By Scott Riddle

Update: KB Toys to close and quickly liquidate for the Christmas rush, according to a Court filing and this Wall Street Journal article:

The company plans to quickly start going-out-of-business sales at hundreds of its stores, "in order to take advantage of the last two weeks of the holiday selling season," KB Toys said in a filing with the U.S. Bankruptcy Court in Wilmington, Del.

From Bloomberg:

KB Toys Inc., the 86-year-old toy retailer, filed for bankruptcy three years after leaving court protection, blaming a cash crisis caused by a “sudden” drop in sales at its 277 stores...  “The liquidity crisis is directly attributable to a sudden and sharp decline in consumer sales,” Controller Raymond Borst said in court documents filed in U.S. Bankruptcy Court in Wilmington, Delaware...  The case is In re KB Toys Inc., 08-13269 U.S. Bankruptcy Court, District of Delaware (Wilmington).

 

Full post as published by Georgia Bankruptcy Blog on December 11, 2008 (boomark / email).