KB Toys Re-Enters Ch. 11, Plans To Close All Stores

Law360, New York (December 11, 2008, 12:00 AM EST) -- A sudden decline in consumer sales has sent KB Toys Inc., the nation's largest mall-based specialty toy chain, into bankruptcy protection, about three years after it emerged from an earlier Chapter 11 case under the ownership of Prentice Capital Management Inc.

The toy seller filed a voluntary petition with the U.S. Bankruptcy Court for the District of Delaware on Thursday, and asked the court to allow it to use cash collateral to continue to pay employees so the debtor can begin immediate going-out-of-business sales.

“In order...
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