View the list of stores to be closed. (This is a .pdf file, so you'll need the free Adobe Reader program to view it.) PITTSFIELD, Massachusetts, January 28, 2004 � KB Toys, Inc. today announced that it is closing at least 375 stores as part of its restructuring efforts. KB Toys is restructuring to address financial challenges created primarily by the price war during the 2003 holiday season, mass merchants' increasing use of toys as loss leaders during the holiday season, and increasing price competition in the toy market during the remainder of the year. KB Toys noted it will continue operating more than 750 stores throughout the United States, the Commonwealth of Puerto Rico and the American Territory of Guam.
KB Toys, Inc. said it had received approval from the United States Bankruptcy Court for the District of Delaware to engage The Ozer Group LLC, The Nassi Group LLC and SB Capital Group LLC as its agents to conduct the store-closing inventory sales in at least 356 stores beginning January 29, 2004. By February 11, 2004, the Company will identify an additional 19 to 115 stores for closing. KB Toys said it expects to sell up to $122.5 million of inventory through the store-closing process.
As a result of the restructuring and store closings, KB Toys said it will reduce its employment level by approximately 3,500 positions from the current level of approximately 12,000 positions.
"Closing these stores is a major step in KB Toy's restructuring process. These stores are underperforming or do not fit with KB Toys' strategic plans. Closing them also allows us to further reduce our corporate overhead and regional operating costs. Overall, this step greatly strengthens KB Toy's financial position and puts KB Toys in a position to compete more effectively in the future," said Michael L. Glazer, chief executive officer of KB Toys, Inc. "The decision to close these stores was difficult but necessary. We want to thank all of the affected employees for their tremendous dedication and support of the Company."
The Company said that a list of the stores that will be closed will be posted at www.kbtinfo.com and will be updated as additional stores are added.
KB Toys, Inc. is the nation's largest combined mall-based and online specialty toy retailer. It is a more than 80-year old company, privately held and headquartered in Pittsfield, Massachusetts.
