KB Toys Says Wal-Mart Is One Cause For Bankruptcy Filing
By: Import User
Updated: January 7, 2009
For the second time in two months, a
major toy chain has filed for bankruptcy protection.
Dow Jones News Service says KB Toys is seeking Chapter Eleven
protection from creditors. Lackluster holiday sales had earlier
prompted the chain to suspend payments to vendors.
KB Toys operates more than 1,300 stores, including eleven
in Colorado, plus another eleven outlet and KB Toys at Sears stores.
The parent of FAO Schwarz filed for bankruptcy early in
December, its second filing in a year.
Analysts say growth in the toy sector by Bentonville,
Arkansas-based Wal-Mart has put other toy sellers in a bind. The
world`s largest retailer cut toy prices ahead of the holiday
season, putting pressure on rivals.
