PITTSFIELD, Massachusetts, October 26, 2004 � KB Toys, Inc. today announced that it will close 141 to 238 underperforming stores by January 31, 2005, as part of its continuing reorganization efforts. KB Toys, Inc. said that it expects this will be the final round of store closings before the company's projected emergence from chapter 11 bankruptcy in early 2005. The company will continue operating approximately 600 stores throughout the United States, the Commonwealth of Puerto Rico and the American Territory of Guam.
KB Toys, Inc. said it has filed a motion with the United States Bankruptcy Court for the District of Delaware seeking approval to hold store closing sales in 141 to 238 stores. The company has also stated that it is seeking approval to engage a joint venture group led by Gordon Brothers to assist it with the store-closing inventory sales.
"These store closings represent a significant element of KB Toys plan of reorganization and will not hinder our holiday operations. Our employees and stores are fully prepared to serve our customers today and through the holiday season and beyond," said Michael L. Glazer, president and chief executive officer of KB Toys, Inc. "We want to assure our loyal customers that KB Toys is dedicated to preserving the specialty toy store experience for children and families."
Glazer further commented, "We remain confident that KB Toys will emerge from this reorganization in a stronger position to compete more effectively in the marketplace. We regret the impact this difficult decision will have on our employees and want to thank those affected for their hard work and support of the company during this process."
The Company said that a list of the closing stores will be posted at www.kbtinfo.com.
KB Toys, Inc. is the nation's largest mall-based specialty toy retailer. It is a more than 80-year old company, privately held and headquartered in Pittsfield, Massachusetts.
