Private Equity Firm’s Toy Store Goes Under

Dec 15 2008 | 1:03am ET

Playing the role of Scrooge this holiday season is Prentice Capital Management: KB Toys, the retailer owned by the private equity firm, has filed for bankruptcy and will be liquidated.

KB, which runs 461 stores, will undergo an “expedited and orderly” bankruptcy liquidation, according to filings with U.S. Bankruptcy Court in Wilmington, Del. The company also plans going-out-of-business sales “to take advantage of the last two weeks of the holiday selling season.”

KB is some $200 million in debt, according to the filing.

Prentice, which owns 90% of KB, brought the company out of bankruptcy three years ago. Another p.e. firm, Bain Capital, owned the toystore chain at the time of its first bankruptcy in 2004.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...