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K•B Toys (previously known as Kay Bee Toys) is a chain of
mall-based retail toy stores in the United States. It was founded in 1922 by
the Kaufman brothers. It currently operates 605 stores in 44 U.S. states,
Puerto Rico as well as Guam. KB Toys operates three distinct store formats:
K•B Toys, K•B Toy Works, and K•B Toy Outlets (aka Toy Liquidators). It is
privately held in Pittsfield, Massachusetts. K•B Toys was owned by Big Lots
and Melville Corporation at one time.
Financial trouble
In 2004, due to increasing competition from national discount chains such as
Wal-Mart, on January 14, K•B Toys filed for Chapter 11 bankruptcy protection
and closed 365 stores.
In 2005, Big Lots and a group of creditors, including toymakers Hasbro and
Lego filed a lawsuit against top K•B Toys executives, which claimed that K•B
Toys executives improperly paid themselves over $121 million, while ignoring
debts and closing stores. The executives responded that they had done
nothing wrong, and the store closings, layoffs and debts were the product of
intense competition with big box retailers such as Wal-Mart and Target. The
lawsuit was later settled for pennies on the dollar. Though, there are
stores being remodeled in Orlando, Florida if that is any indication of the
state of the company currently.
In 2007, K•B plans to close close to 156 stores beginning on November 8th.
The Gordon Brothers Group will handle the liquidation of these stores.
managers have been promised a minimum of four weeks severance pay upon
completing their service through liquidation.
Lawsuit
Hong Kong-based Silverlit Toys Manufactory Ltd., an acknowledged leader in
the development and manufacturing of high-quality electronic toys, and Spin
Master Ltd., Silverlit’s North American distribution partner and owner of
the well-known Air Hogs brand of flying toys, have jointly filed a lawsuit
against K•B Toys and Westminster Inc. in the U.S. District Court for the
Eastern District of Virginia to stop sales of a competing Mini Helicopter.
The lawsuit alleges that the Thunder Wolf Mini Indoor MicroLite Helicopter
infringes certain U.S. design patents owned by Silverlit, creator of the
Havoc Heli licensed by Spin Master and sold as the Air Hogs Havoc Heli.
Further, the lawsuit contends that KB and Westminster conspired to copy the
popular Air Hogs Havoc Heli and replace those sales with the infringing
Thunder Wolf. In addition to an injunction against further sales, the
lawsuit also seeks damages for past sal
Pop culture
The opening scene of 2007's Ocean's Thirteen shows the character Rusty (Brad
Pitt) breaking into a K•B Toy Store late at night to crack open a safe, only
to walk away moments later.
A scene in Adam Sandler's 8 Crazy Nights features the K•B Toys store in a
mall and the toy soldiers which were once the mascot for the store singing.
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