KB Toys to Emerge From Bankruptcy
Pittsfield, Mass., KB Toys Inc. expects to emerge from Chapter 11 bankruptcy protection around Aug. 29. The company has been in bankruptcy for one year and eight months after having to participate in price wars with discount chains. A bankruptcy judge in Delaware approved KB Toys’ reorganization plan.
The company will now be under control of a subsidiary of New York City investment firm Prentice Capital Management. Michael L. Glazer, KB Toys’ chief executive, will be replaced by Gregory R. Staley, new president and CEO. Staley was previously president of Toys “R” Us’ U.S. and international divisions. Roger V. Goddu will be a director and consultant at KB Toys. He is a former CEO of Montgomery Ward and a former president at Toys “R” Us.