KB Toys files for bankruptcy protection

NEW YORK—KB Toys filed for bankruptcy protection for the second time in four years on Thursday, joining fellow retailers Linens N Things and Steve & Barry’s in seeking Chapter 11 protection amid weak sales linked to the economic recession.

The Pittsfield, Mass.-based retailer filed in the U.S. Bankruptcy Court in Delaware, reporting total debt between $100 million and $500 million and total assets in the same range.

Like most other retailers this holiday season, the toy seller had aggressively cut prices to entice cash-strapped shoppers, offering hundreds of toys for $10 or less.

KB Toys filed for bankruptcy in 2004 and emerged nearly two years later as a subsidiary of investment firm Prentice Capital Management. The more than 80-year-old company operates 460 stores.