KB Toys, one of the nation’s largest toy retailers, filed for bankruptcy protection Thursday with a plan to close all of its stores, becoming the latest chain to succumb to the sharp decline in consumer spending this year.
The company, which runs about 460 stores, said in court papers that it intended to immediately begin going-out-of-business sales in its stores, while trying to find a buyer for its wholesale distribution unit.
KB Toys filed a Chapter 11 petition in Federal Bankruptcy Court in Delaware, along with eight affiliates, listing assets in the range of $100 million to $500 million and liabilities in the same range.
The company, which started in 1922 as a family-owned business, previously filed for bankruptcy protection in 2004 and emerged from bankruptcy in 2005 after selling itself to Prentice Capital Management.
KB Toys said it had 10,850 employees, about 6,515 of them seasonal. About 277 stores are located in malls; 30 operate seasonally and were set to close in January.