KB Toys gets approval to hire liquidators for 375 stores

By Jeff Pines

Washington, Jan. 28 - KB Toys Inc. said it received court approval to hire The Ozer Group LLC, The Nassi Group LLC and SB Capital Group LLC to run its store-closing sales in at least 375 stores starting Jan. 29.

The Pittsfield, Mass.-based toy retailer plans to identify another 19 to 115 stores for closing. It expects to sell up to $122.5 million of merchandise through the sales.

The restructuring and store closings will eliminate about 3,500 employees reducing the company's labor force to about 8,500 workers.

"Closing these stores is a major step in KB Toys' restructuring process. 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," said Michael Glazer, chief executive officer of KB Toys.

KB Toys filed for Chapter 11 earlier this month citing a fierce price war with large discounters and its other competitors.

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