KB Toys Files for Bankruptcy Protection

Pittsfield, Mass. KB Toys filed for bankruptcy protection for the second time in four years on Thursday, according to the Associated Press.

The company said in its filing in U.S. Bankruptcy Court in Delaware that it had debts between $100 million and $500 million and total assets in the same range.

KB Toys had aggressively cut prices to entice shoppers, offering hundreds of toys for $10 or less. It also expanded its value program, which offers deals on new items each week, to include video games and DVD movies.

However, the company's debt overwhelmed its efforts, the report said. Vendors top KB Toys' list of unsecured creditors. The company owes toy manufacturer Li & Fung about $27.2 million, Mattel Toys $1.3 million and Energizer Battery more than $728,000. Other creditors are Hasbro Inc. and the maker of Legos.