NEW YORK – Bankrupt toy seller KB Toys Inc. (search) said on Tuesday it plans to close 141 to 238 underperforming stores by the end of January as part of a reorganization effort that will allow it to emerge from bankruptcy next year.
The Pittsfield, Mass., company expects this will be the final round of store closings before it emerges from Chapter 11 bankruptcy (search) in early 2005.
KB Toys said it will continue to operate about 600 stores throughout the United States, Puerto Rico and Guam.
"These store closings represent a significant element of KB Toys plan of reorganization and will not hinder our holiday operations. Our employees and stores are fully prepared to serve our customers today and through the holiday season and beyond," said Michael L. Glazer, president and chief executive officer of KB Toys, Inc.
Reuters contributed to this report.