Wednesday, October 27, 2004
STAFF/WIRE REPORT
PITTSFIELD, Mass. -- KB Toys Inc., the toy store chain that sought Chapter 11 bankruptcy protection in January, said it intends to close at least 148 stores, including one in Southern Park Mall in Boardman.
The company has compiled a list of stores that are almost certain to close, with another 97 stores that could remain open depending on talks with landlords aimed at securing more favorable lease terms, said John Reilly, a company spokesman.
The latest round of cuts will leave the Pittsfield-based chain of mall-based toy stores with less than half of the 1,231 stores it had at the beginning of the year. The chain has already closed 427 stores over the past eight months and cut 3,400 jobs.
"These store closings represent a significant element of KB Toys plan of reorganization and will not hinder our holiday operations," Michael L. Glazer, president and CEO, said in a statement. "We remain confident that KB Toys will emerge from this reorganization in a stronger position to compete more effectively in the marketplace."
All stores will remain open through the holidays and the year's end, Reilly said.
Glazer said he expected the store closings to be completed in January 2005 and mark the last stage in the company's reorganization.