- KB Toys
Infobox_Company
company_name = KB Toys, Inc.
company_
company_type = Private/Toy Store
foundation = 1922
location =Pittsfield, Massachusetts
industry =Retail
products = Toys, electronics, board games, dolls, and video games.
homepage = http://www.kbtoys.com/http://www.kbclubhouse.com/KB Toys (previously known as Kay Bee Toys) is a chain of mall-based
retail toy store s in theUnited States . It was founded in 1922 by the Kaufman brothers. It currently operates 605 stores in 44U.S. state s,Puerto Rico as well asGuam . KB Toys operates three distinct store formats: KB Toys, KB Toy Works, and KB Toy Outlets (aka Toy Liquidators). It is privately held inPittsfield, Massachusetts . KB Toys was owned byBig Lots andMelville Corporation at one time.Financial trouble
Due to increasing competition from national discount chains such as
Wal-Mart , onJanuary 14 ,2004 , KB Toys filed forChapter 11 bankruptcy protection and closed 365 stores.In 2005,
Big Lots and a group of creditors, including toy makersHasbro andLego filed a lawsuit against top KB Toys executives, which claimed that KB Toys executives improperly paid themselves over $121 million, while ignoring debts and closing stores. The executives responded that they had done nothing wrong, and the store closings, layoffs and debts were the product of intense competition with big box retailers such asWal-Mart and Target. The lawsuit was later settled for pennies on the dollar.In 2007, KB closed 156 stores on November 8th. The
Gordon Brothers Group handled the liquidation of these stores. Managers were promised a minimum of four weeks severance pay upon completing their service through liquidation.External links
* [http://www.kbclubhouse.com/ KB Toys] corporate site
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