KB Toys Bankruptcy Ends Long, Shapeshifting History

Obit Magazine :

It was game over for the second largest toy retailer when it filed for Chapter 11 bankruptcy on December 10, the second time in four years. While KB Toys' demise had been anticipated, even expected, by many in the industry, the timing came as a surprise as most figured the store would try to hang on through the holidays. By filing Chapter 11, the store retains control over its assets as it tries to liquidate. But that's not necessarily good news for its creditors, which include Hasbro, LEGO and other toy suppliers like Hong Kong-based Li & Fung that may be owed more than $27 million.

Ironically, it was the response to changing times that created KB, just as today's rapidly changing economy has hastened its end. The company was founded in 1922 by the Kaufman Brothers (hence, "KB") as a candy wholesaler. In the 1940s, they acquired a wholesale toy company as payment for outstanding debts. Due to sugar shortages during World War II, the candy business became a difficult enterprise.

Read the whole story: Obit Magazine

Comments

[EinChicago]

This is hardly a surprise. KB has been on it's last gasp for years and almost went into bankruptcy in 2002. It had an unsustainable business model that would have died this year or next regardless of the economy, although I'm sure that accelerated it somewhat.

[planetjeffy]

This is just the beginning. Wait til after Xmas, you will see a poopload of stores take a dive.

[hilaritee]

i have never been impressed with their stores....most of their stock are cheap, second rate toys. i am amazed they had made it this long...

[mjb5406]

I think this is just another chapter in the story of how Big Box stores (i.e. Walmart) are killing its competition. You can bet there will be more of it going forward.

[spinns17]

oh well .now the chinese can start losing there jobs and homes

[sonoffestus]

They already are and the Chinese government is very, very concerned. They remember what disgruntled masses can do. We're a country of sheeple, so it's not a big concern for our government .

[satyriasis]

I used to shop there frequently as a child. This is unfortunate. Although their business model has been obsolete for a while the current economic crash created by the GOP and their wall street buddies has taken another casualty.