86 year old toy retailer to close doors for good... Founded in 1922 as a family-owned and run retailer, KB Toys has once again filed for Chapter 11 bankruptcy following their previous bail out by Prentice Capital Management LP in 2005. However, instead of reorganizing and attempting a comeback as it did three years ago, the toy retail giant with over 400 stores world-wide, will liquidate its assets and close up shop for good.
Based out of Pittsfield, Massachusetts, the company owes approx. $65 million on loans to first-lien lenders as well as almost $30 million on letters of credit to the first-lien group. Likewise, the company also owes near $95 million to second-lien lenders.
Located primarily in shopping malls, KB Toys consists of approximately 460 stores world-wide: 277 in malls, 40 strip mall venues, 114 outlets, and 30 temporary "holiday stores." According to reports, the company will soon start holding "Going Out of Business" sales at all stores "in order to take advantage of the last two weeks of the holiday selling season."
Good news for collectors looking for a good deal, bad news for KB Toys and collectors down the road...
