Toys 'R' Us buys KB brand

New York Toys "R" Us Inc. said Friday it acquired the KB Toys' brand, including its Web site, trademarks and intellectual property rights.

KB Toys filed for bankruptcy in December. It sold its logos and online addresses in a bankruptcy auction last month for $2.1 million to CE Stores, a unit of Toys "R" Us.

The acquisition doesn't include KB Toys' 460 stores, which were closed and liquidated earlier this year following the chain's bankruptcy filing. Toys "R" Us  hasn't yet decided how it will use the KB name as part of its business plan, a company spokeswoman said.

Earlier this year, Toys "R" Us bought FAO Schwarz and eToys.com in separate transactions for undisclosed sums.

"We continue to make prudent capital investments to expand our business, domestically and around the world," said chairman and CEO Jerry Storch in a statement.

The Toys "R" Us announcement comes as other retailers, including Wal-Mart Stores Inc., Target Corp. and, most recently Sears,  have made renewed pushes into toys.

In related news, Toys "R" Us on Friday reported its fiscal second-quarter profit more than doubled on lower expenses and higher margins. For the quarter ended Aug. 1, the company reported earnings of $27 million, up from $13 million a year earlier. Net sales fell 7.4% to $2.57 billion, mostly due to softness in the entertainment-products category, specifically video game hardware and software.