KB Toys

In 1999, the company operated 1,324 stores across the United States and was the second-largest toy retailer in the U.S., but it later declared bankruptcy in both 2004 and 2008 before going out of business on February 9, 2009.

[1][4][5] During the 1940s, the brothers acquired a wholesale toy company from a candy client who owed them money for outstanding debts.

"[15][16] That year, Melville Corporation purchased Circus World's 330 stores in 32 states for $95 million; the locations became part of the Kay-Bee division.

[30] In September 1999, Consolidated Stores announced plans to sell 20 percent of KBKids through shares in an upcoming public offering.

[32] In January 2000, Consolidated Stores filed with the U.S. Securities and Exchange Commission to have KBKids listed on the NASDAQ as a separate and publicly traded company with the ticker symbol "KBKD".

[35] In December 2000, Bain Capital purchased the company for $305 million, in partnership with KB Toys' management team.

[38][35] The investment group included 200 store managers led by Bain Capital and by KB Toys' chief executive officer Michael Glazer.

[35][39] Bain Capital contributed $18.1 million to the sale, while the remainder was financed by banks that lent the money to KB Toys.

[40][41][46] KB Toys suffered tough competition during the 2003 Christmas season, in addition to expensive store leases in malls with decreased customer visitation.

[6][47][40] Creditors stated that the 2002 dividend deal with Bain Capital had rendered KB Toys insolvent, resulting in a loss of $109 million leading up to the bankruptcy filing.

[40][41] In February 2005, KB Toys' creditors, including Hasbro and Lego, accused the company's top executives and majority shareholders of improperly providing themselves with multimillion-dollar payments prior to the bankruptcy.

[51] KB Toys exited Chapter 11 bankruptcy in August 2005, with 90 percent of its ownership under PKBT Holdings, an affiliate of Prentice Capital Management.

Because K·B Toys' stores had been closed and liquidated, the sale applied mainly to the company's logo, website, trademarks, and other intellectual properties.

[16] In March 2018, Strategic Marks founder Ellia Kassoff stated that due to Toys "R" Us going out of business in the United States, Strategic Marks planned to open 1,000 KB Toys pop-up stores across America for Black Friday (November 2018).

Kasoff stated that the delay would "give us plenty of time to build out the most optimum supply chain, distribution and retail infrastructure our customers deserve."

Strategic Marks sought an investment bank to finance the opening of 200 to 250 temporary KB Toys stores, which would determine whether permanent locations would be viable.

Another possible reason why the revival never fully materialized is because Strategic Marks failed to renew the trademark for KB Toys in 2020.

In November 2024, the Firefly Brand Management Partnership announced plans to bring back KB Toys.

KB Toys denied the allegation, and stated that racial demographics were not a consideration when enacting the policy 13 years earlier.

[64] By March 2000, the lawsuit had been amended to include three additional black plaintiffs, and the suit sought damages as well as an end to the company's check-writing policy.

[65] In January 2001, a U.S. District judge removed TERC from the case as it was not affected by KB Toys' check-writing policy.

[67] In 2001, the district attorney for Napa County, California filed a lawsuit alleging that KB Toys misrepresented sale prices and that it sold returned items as new.