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 1997-2009 Logo |
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| Former type | Private Toy Store |
|---|---|
| Industry | Retail |
| Fate | Liquidation; sold to Toys R Us |
| Founded | 1922 |
| Defunct | 2009 |
| Headquarters | Pittsfield, Massachusetts, U.S. |
| Products | Toys, electronics, board games, dolls, and video games |
| Website | http://www.KBToys.com, Forwards to http://www.Toys.com, a subsidiary of http://www.ToysRUs.com |
K·B Toys (previously known as Kay Bee Toys) was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts. K·B Toys was owned by Melville Corporation (which was responsible for its CVS/Pharmacy chain), but that company sold it to Consolidated Stores in 1996. It was also the second-oldest operating toy retailer in North America (behind FAO Schwarz) before its demise.
Following the company's second bankruptcy in five years, the chain was liquidated beginning in December 2008. The sales were concluded on February 9, 2009.[1] International retailer Toys R Us announced on September 4, 2009 that it had acquired the remains of K·B Toys, consisting mainly of its website, trademarks, and intellectual property rights.[2]
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[edit] Operations
At the time of its liquidation, K·B Toys operated three distinct store formats: K·B Toys, K·B Toy Works, and K·B Toys Outlet (aka Toy Liquidators). K·B Toys stores were mostly found in the company's traditional base of shopping malls, where many of its stores were located for years. K·B Toy Works stores were typically found in outdoor strip malls. K·B Toys Outlet and Toy Liquidators stores, as the name implies, were usually found in outlet centers/malls. At their largest, K B operated over 1300 stores and were found in all 50 states.
[edit] Financial trouble
KB Toys was purchased and taken private in 2000 by the leveraged buyout firm of Bain Capital for $305 million, Bain announced the purchase on Dec. 8th, 2000. Only $18 million of the purchase money was cash, the rest was borrowed against the assets of the company. Sixteen months after the buyout, Bain Capital paid itself $85 million in dividends in early 2002. Two years later, due to increasing competition from national discount chains such as Wal-Mart and Target and its enormous debt, on January 14, 2004, K·B Toys filed for Chapter 11 bankruptcy protection and closed 365 stores.
K·B closed 156 stores on November 8, 2007. The Gordon Brothers Group[3] handled the liquidation of these stores. On February 9, 2009, K·B closed the remaining stores following the second bankruptcy filing in four years. In addition, K·B Toys' website was closed down.
The K·B Toys brand and related intangible assets were sold by Streambank LLC to Toys R Us on September 4, 2009 for a reported $2.1 Million. Because K·B Toys' 460 stores had been closed and liquidated, the sale applies mainly to the company's logo, website, and trademarks/intellectual properties. Toys R Us remains unsure of how the K·B name will fit into its future business plan.[2] So far, Toys R Us uses the K·B Toys brand in self-manufactured toys, under the name "KB Classics" with the K·B Toys logo.
[edit] Slogans
"America's Toy Store"
"Hot We Got, at KB"
"The Toy Store in the Mall"
[edit] References
- ^ Brickley, Peg (December 11, 2008). "K·B Toys Faces Liquidation". Wall Street Journal. Dow Jones & Company. http://online.wsj.com/article/SB122901585422798605.html?mod=googlenews_wsj. Retrieved 2010-01-09.
- ^ a b Pereira, Joseph; John Kell (September 4, 2009). "Toys 'R' Us Buys KB Toys' Brand". Wall Street Journal. Dow Jones & Company. http://online.wsj.com/article/SB125209531190087209.html. Retrieved 2010-01-09.
- ^ [1][dead link]
[edit] External links
- Official website
- K·B Toys -- Company History FundingUniverse.com, dense overview of business history as of 2006 (~15kb)
- Toys R Us official website, forwarded to via kbtoys.com
