KB Toys to exit bankrupcy by the end of August
Wednesday, August 24th, 2005 5:21pm CDTCategory: Site News
Posted by: Sideshow Sideswipe Views: 10,340
"KB's Bankruptcy Exit Approved
Two Former TRU Prexies on Board
August 24, 2005
KB Toys Inc. has announced that the company plans to emerge from Chapter 11 bankruptcy by the end of the month. A Delaware bankruptcy court judge approved KB's latest reorganization plan (see "KB Tries Again to Exit Chapter 11") and the company indicates that it should be able to exit Chapter 11 by August 29th, a year and eight months after it received bankruptcy protection after being bloodied in the brutal price competition brought on by Wal-Mart's aggressive pricing during the holiday season of 2003 (see "Wal-Mart Applying Toy Category Kill Shot").
The reorganization plan approved by the judge puts the KB Toys chain under the control of the New York City investment firm Prentice Capital Management and puts two former Toys "R" Us presidents, Gregory Staley and Roger Goddu, on the KB Toys management team."