KB Toys Inc. (Pittsfield, Mass.), the bankrupt toy retailer, announced that it is closing at least 375 stores as part of its restructuring efforts.
The company said it will continue operating more than 750 stores throughout the U.S., Puerto Rico and Guam.
It has already received approval from the bankruptcy court to conduct store-closing inventory sales in at least 356 stores, beginning Jan. 29, 2004. By February 11, it will identify at least 19, and perhaps as many as 115, more stores for closing.
“Closing these stores is a major step in KB Toy's restructuring process,” said ceo Michael Glazer. “These stores are underperforming, or do not fit with KB Toys' strategic plans. Closing them also allows us to further reduce our corporate overhead and regional operating costs. Overall, this step greatly strengthens KB Toy's financial position and puts [us] in a position to compete more effectively in the future.”