Like many other retail stores, the notable toy retailer known as KB Toys may not have a jolly Christmas. For the employees of KB Toys, the holidays may not be so happy.
This is due to KB Toys, for the second time in four years, is filing a Chapter 11. In the nutshell term, KB Toys is filing for bankruptcy protection. There is a high chance that the 86-year-old toy retailer might end up biting the dust.
According to the company, the contributing factors would be decline in sales and the current state of the economy. Overall, KB Toys is headed down south. The toy store was spiking up its discounts. However, it would not save KB Toys. The major reason that the discounts did not work is because the toys were not “hot.”
According to toy analyst Jim Silver, people want the hot toys. KB Toys was not giving discounts for the hot toys. Like many retailers, KB Toys could very well bite the dust. However, this does post a question: If KB Toys gives up the ghost due to this situation, what are the situations with the other toy retailers? This may have employees of competing toy retailers worrying about their fates in the near future.
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