KB Toys Files for Bankruptcy!

hukarez · 01-15-2004, 01:31 PM

Man, I miss Play Co!

KB Toys Follows FAO Into Bankruptcy

NEW YORK (Reuters) - Toy retailer KB Toys Inc. on Wednesday filed for bankruptcy on the heels of a soft holiday shopping season wrought by harsh competition from bigger rivals, according to court papers.

KB, controlled by the private investment firm Bain Capital, is the second major toy chain to fall into bankruptcy in about the past month. FAO Inc. (Other OTC:FAOOQ - news), parent of the iconic FAO Schwarz toy-store chain, in December filed for Chapter 11 bankruptcy protection for the second time in a year.

KB filed its Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.

The holiday period is usually the big money maker for toy retailers, but this latest season brought severe competition as Wal-Mart Stores Inc. (NYSE:WMT - news), Target Corp. (NYSE:TGT - news) and other major players slashed prices to lure customers.

http://story.news.yahoo.com/news?tmp...tail_kbtoys_dc

Philliesfan980 · 01-15-2004, 01:37 PM

Quote:

Originally Posted by hukarez

Man, I miss Play Co!

KB Toys Follows FAO Into Bankruptcy

NEW YORK (Reuters) - Toy retailer KB Toys Inc. on Wednesday filed for bankruptcy on the heels of a soft holiday shopping season wrought by harsh competition from bigger rivals, according to court papers.

KB, controlled by the private investment firm Bain Capital, is the second major toy chain to fall into bankruptcy in about the past month. FAO Inc. (Other OTC:FAOOQ - news), parent of the iconic FAO Schwarz toy-store chain, in December filed for Chapter 11 bankruptcy protection for the second time in a year.

KB filed its Chapter 11 petition in the United States Bankruptcy Court for the District of Delaware.

The holiday period is usually the big money maker for toy retailers, but this latest season brought severe competition as Wal-Mart Stores Inc. (NYSE:WMT - news), Target Corp. (NYSE:TGT - news) and other major players slashed prices to lure customers.

http://story.news.yahoo.com/news?tmp...tail_kbtoys_dc

This really doesn't surprise me at all. Kay Bee really focused on the "old school" toys, such as board games, and figures. Now everything is electronic. Toy's R US sells and markets video games. I know Kay Bee has video games as well, but I know that it doesn't really cross my mind to go into Kay Bee to get the newest Console game that I'm looking for.

DanGarion · 01-15-2004, 01:40 PM

Honestly have you been in a Kay Bee recently? It's a craphole.

Philliesfan980 · 01-15-2004, 01:46 PM

Quote:

Originally Posted by dangarion

Honestly have you been in a Kay Bee recently? It's a craphole.

I haven't been there since Christmas 02 when I was getting toys for donating to poor kids. The store just reaks of cheap crap.

rkmsuf · 01-15-2004, 01:48 PM

Of the ones I've been in it always seems like the store is just way to cramped...

DanGarion · 01-15-2004, 01:54 PM

Exactly.

cuervo72 · 01-15-2004, 02:16 PM

Just while we're on the subejct...for the longest time I couldn't stand Toys 'R' Us, because their emergence helped put Kiddie City out of business.

Honolulu_Blue · 01-15-2004, 02:20 PM

This isn't too surprising. I stopped into a Kay Bee in a mall over the holiday season. It was actually two or three days before Christmas. If I'm in a mall, I will almost always try to hit the toy store (which inevitibly is Kay Bee). It's a habit that I've had since I was a kid. No real intention to break it.

That being said, the place was a ghost town. No one was in there. The EB two stores down was jam-packed with lines snaking through the store. Definitely electronic. Kay Bee does always feel cheap and cramped.

Oh well...

Ksyrup · 01-15-2004, 03:24 PM

KB is the KMart of toy stores.

SackAttack · 01-15-2004, 05:30 PM

That's what happens when every damn one of your stores is in a mall. That's why EB Games is starting to branch out into strip malls instead of the traditional kind, so that the same thing doesn't happen to them.

Philliesfan980 · 01-15-2004, 06:41 PM

Quote:

Originally Posted by SackAttack

That's what happens when every damn one of your stores is in a mall. That's why EB Games is starting to branch out into strip malls instead of the traditional kind, so that the same thing doesn't happen to them.

I think its a little different for KB. I think the main problem is that their products suck. Nobody wants board games, they want video games. I think its a simple as that. EB could have a store in every mall and still be ok.

01-15-2004, 01:40 PM	#3
DanGarion Coordinator Join Date: Nov 2003 Location: The Great Northwest	Honestly have you been in a Kay Bee recently? It's a craphole. __________________ Los Angeles Dodgers Check out the FOFC Groups on Facebook! and Reddit! DON'T REPORT ME BRO!

01-15-2004, 01:48 PM	#5
rkmsuf Head Coach Join Date: Dec 2001	Of the ones I've been in it always seems like the store is just way to cramped... __________________ "Don't you have homes?" -- Judge Smales

01-15-2004, 01:54 PM	#6
DanGarion Coordinator Join Date: Nov 2003 Location: The Great Northwest	Exactly. __________________ Los Angeles Dodgers Check out the FOFC Groups on Facebook! and Reddit! DON'T REPORT ME BRO!

01-15-2004, 02:16 PM	#7
cuervo72 Head Coach Join Date: Dec 2002 Location: Maryland	Just while we're on the subejct...for the longest time I couldn't stand Toys 'R' Us, because their emergence helped put Kiddie City out of business. __________________ null

01-15-2004, 03:24 PM	#9
Ksyrup This guy has posted so much, his fingers are about to fall off. Join Date: Nov 2000 Location: In Absentia	KB is the KMart of toy stores. __________________ M's pitcher Miguel Batista: "Now, I feel like I've had everything. I've talked pitching with Sandy Koufax, had Kenny G play for me. Maybe if I could have an interview with God, then I'd be served. I'd be complete."

01-15-2004, 02:20 PM	#8
Honolulu_Blue Hockey Boy Join Date: Oct 2000 Location: Royal Oak, MI	This isn't too surprising. I stopped into a Kay Bee in a mall over the holiday season. It was actually two or three days before Christmas. If I'm in a mall, I will almost always try to hit the toy store (which inevitibly is Kay Bee). It's a habit that I've had since I was a kid. No real intention to break it. That being said, the place was a ghost town. No one was in there. The EB two stores down was jam-packed with lines snaking through the store. Definitely electronic. Kay Bee does always feel cheap and cramped. Oh well...

01-15-2004, 05:30 PM	#10
SackAttack Head Coach Join Date: Oct 2000 Location: Green Bay, WI	That's what happens when every damn one of your stores is in a mall. That's why EB Games is starting to branch out into strip malls instead of the traditional kind, so that the same thing doesn't happen to them.

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