KB Toys seeks to extend exclusive right to file a plan to Jan. 31, to solicit votes to April 1

By Jeff Pines

Washington, Sept. 7 - KB Toys Inc. wants to extend its exclusive right to file a reorganization plan to Jan. 31 from Sept. 27 and to extend its exclusive right to solicit votes for the plan until April 1 from Nov. 26.

The Pittsfield, Mass.-based toy retailer filed the request with the U.S. Bankruptcy Court for the District of Delaware Friday.

In its paperwork, the company said it spent June, July and August exploring whether it should sell its assets or look for a new equity investor. Management decided KB Toys should emerge as a stand-alone company with the creditors gaining control of the company. But, the company needs more time to develop a reorganization plan.

KB Toys added that it is prepared for its busy and profitable holiday selling season.

Since filing for bankruptcy, the company has closed 389 stores and sold $100 million of inventory at retail.

A Sept. 27 hearing is scheduled.

KB Toys filed for bankruptcy on Jan. 14. Its Chapter 11 case number is 04-10120.

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