KB Toys to close 156 stores nationwide
11-09-07 | 08:58 AM
#1
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KB Toys to close 156 stores nationwide
What's the Toy Story?
KB Closures May Be Holiday Harbinger
By Ylan Q. Mui
Washington Post Staff Writer
Saturday, November 3, 2007; Page D01
KB Toys has targeted 156 stores across the country for closure -- six of them in the Washington area -- according to internal company documents, underscoring the cutthroat competition facing toy retailers this holiday season.
The company, which has fewer than 600 stores, plans to hand over management of the selected shops to Gordon Brothers liquidators on Thursday and shut them for good in January, according to a memo from a KB executive to employees. In another memo, dated Oct. 29, KB said it planned to close stores at Fair Oaks Mall, Manassas Mall and Dulles Town Center in Virginia and Bowie Town Center, Montgomery Mall and Silver Spring's City Place Mall in Maryland.
The documents were provided by a store manager, who spoke on the condition of anonymity because the company has not publicly released the information. Geoffrey Webb, KB Toys director of advertising and sales promotion who also handles media inquiries, declined to comment on the documents or potential store closings. KB Toys Chief Executive Andrew Bailen had said in news reports in August that the company planned to close a significant number of stores this fall.
"Making the decision to close your store was very difficult for KB Toys," Gerry Murray, senior vice president of human resources, wrote in a letter to employees. "We recognize the effect this will have on you, your associates and your customers."
The store closures are the latest setback for the embattled company, which replaced its chief executive this summer and has had substantial turnover in top management.
"I just think that KB Toys is in a death spiral," said C. Britt Beemer, chairman of America's Research Group, a consumer behavior research firm.
KB Toys filed for bankruptcy protection in 2004 after a bruising holiday price war with Wal-Mart caused sales to plummet. The chain, based in Pittsfield, Mass., then operated 1,231 stores. Now it has less than half that number. The private-equity firm PKBT Funding, an affiliate of Prentice Capital Management, became majority owner in 2005 when the chain emerged from bankruptcy and has been attempting to turn it around.
KB Closures May Be Holiday Harbinger
By Ylan Q. Mui
Washington Post Staff Writer
Saturday, November 3, 2007; Page D01
KB Toys has targeted 156 stores across the country for closure -- six of them in the Washington area -- according to internal company documents, underscoring the cutthroat competition facing toy retailers this holiday season.
The company, which has fewer than 600 stores, plans to hand over management of the selected shops to Gordon Brothers liquidators on Thursday and shut them for good in January, according to a memo from a KB executive to employees. In another memo, dated Oct. 29, KB said it planned to close stores at Fair Oaks Mall, Manassas Mall and Dulles Town Center in Virginia and Bowie Town Center, Montgomery Mall and Silver Spring's City Place Mall in Maryland.
The documents were provided by a store manager, who spoke on the condition of anonymity because the company has not publicly released the information. Geoffrey Webb, KB Toys director of advertising and sales promotion who also handles media inquiries, declined to comment on the documents or potential store closings. KB Toys Chief Executive Andrew Bailen had said in news reports in August that the company planned to close a significant number of stores this fall.
"Making the decision to close your store was very difficult for KB Toys," Gerry Murray, senior vice president of human resources, wrote in a letter to employees. "We recognize the effect this will have on you, your associates and your customers."
The store closures are the latest setback for the embattled company, which replaced its chief executive this summer and has had substantial turnover in top management.
"I just think that KB Toys is in a death spiral," said C. Britt Beemer, chairman of America's Research Group, a consumer behavior research firm.
KB Toys filed for bankruptcy protection in 2004 after a bruising holiday price war with Wal-Mart caused sales to plummet. The chain, based in Pittsfield, Mass., then operated 1,231 stores. Now it has less than half that number. The private-equity firm PKBT Funding, an affiliate of Prentice Capital Management, became majority owner in 2005 when the chain emerged from bankruptcy and has been attempting to turn it around.
11-09-07 | 10:46 AM
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There is one KB Toys and one KB Toy Works in this area. They are both sad excuses for toy stores as they always look like they are closed or don't care. They gave up selling video games quite some time ago and their prices are still higher than Walmart and Toys R Us. Why would anyone still want to shop there?
11-09-07 | 02:01 PM
#6
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we have one here and i figured they been closing for awhile, but i found some awesome deals bc they been putting like section by section up to the front of the store for insane deals. *was done with xmas shopping for all my nieces and cousins months ago from these sales*
so ill imagine theyll be gone. next town over has a really big and decently priced K*B tho
so ill imagine theyll be gone. next town over has a really big and decently priced K*B tho
11-09-07 | 05:51 PM
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FYI Anyone who is a collector of toys, wrestling figures for example, please note that KB Toys store that are going out of business mark every item they sell with a magic marker thru the barcode, they state all sales are final and they have to mark all items being sold. So if there are any collectors who collect toys and keep them in the package, they basically ruin the packaging by marking the bar code, thus making the figure and/or toy not in mint condition.
11-09-07 | 10:12 PM
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You can use this to see if the stores near you are closing or not:
http://locator.mykbtoysstore.com/StoreLocator.htm
EDIT:fixed link
http://locator.mykbtoysstore.com/StoreLocator.htm
EDIT:fixed link
Last edited by ringside; 11-10-07 at 12:52 AM.
11-09-07 | 11:31 PM
#11
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Originally Posted by ringside
You can use this to see if the stores near you are closing or not:
http://locator.mykbtoysstore.com/STATES/kbca.htm
http://locator.mykbtoysstore.com/STATES/kbca.htm
There are two in my area: the store in the Kenwood Towne Centre, and the outlet across the river in the ghetto section of Newport, KY.
11-10-07 | 12:01 AM
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Woah. I have some KB giftcards, and all the ones near me are closing. I better use them soon.
although I think they stopped carrying videogames in stores, right?
Maybe I can use the giftcards online.
although I think they stopped carrying videogames in stores, right?
Maybe I can use the giftcards online.
11-10-07 | 12:52 AM
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Originally Posted by printerati
Thanks for this. Just change the last two letters in the .htm portion of the link to select your state manually (kboh.htm for Ohio, etc.).
There are two in my area: the store in the Kenwood Towne Centre, and the outlet across the river in the ghetto section of Newport, KY.
There are two in my area: the store in the Kenwood Towne Centre, and the outlet across the river in the ghetto section of Newport, KY.
http://locator.mykbtoysstore.com/StoreLocator.htm
I will edit my original post. It's been a long week!
11-10-07 | 06:46 AM
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Originally Posted by ringside
You can use this to see if the stores near you are closing or not:
http://locator.mykbtoysstore.com/StoreLocator.htm
EDIT:fixed link
http://locator.mykbtoysstore.com/StoreLocator.htm
EDIT:fixed link
Only 2 things surprise me, though - that it took so long to happen and that there aren't more stores closing down.
Ever since Circus World turned into KB Toys, the prices have been horrid. Maybe I'll be pleasantly surprised, but when I visit the stores that are closing I expect that even with their closeout prices the merch will still be priced higher than what I'd pay elsewhere.
Does anyone have news from any of the locations as to discounts yet?
