KB Toys files for bankruptcy

KB Toys has become the latest retailer to fall victim to the difficult economy. The toy retailer filed for Chapter 11 bankruptcy protection, following a significant drop in sales at its 277 stores.

Bankruptcy is nothing new for KB Toys. The company filed for reorganization under Chapter 11 on Jan. 14, 2004, after a dismal holiday selling period. The company emerged from bankruptcy protection in August of 2005.