KB Toys announced today they’ve filed for Chapter 11 Bankruptcy and will begin liquidation sales immediately. The toy retailer is 86 years old and just emerged from bankruptcy reorganization two short years ago. They last filed in 2004 and emerged two years later but have been struggling since then. Suppliers were weary of shipping product for fear of not being paid which accellerated KB Toy’s financial problem.
The company operates 277 mall-based stores, 40 KB Toy Works stores which are mainly in strip malls, 114 outlet stores and 30 short-term holiday stores. It has 4,400 full-time employees and 6,515 seasonal employees.
