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Will KB Toys Live On After Liquidation?
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News Editor
The stores may be shuttered, the company liquidated, but retail brands are increasingly living on long after the bankruptcy proceedings have ended.
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No word yet from Toys 'R Us regarding its plans to use the KB Toys brand as part of its business. But the expansion of its brands comes at a time when the retailer is facing increasing competition from discount retailers such as Wal-Mart Stores [WMT
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], which also sells toys.
The move gives Toys 'R Us a wide variety of toy brands, including FAO Schwarz and eToys.com.
When Toys 'R Us bought FAO Schwarz in May, it said that it was planning to use that high-end brand as laboratory of all sorts for innovative toys.
KB Toys has long been known for less pricey items, raising the possibility that the retailer could use the brand to clear out merchandise or market less expensive toys. Alternately, the brand may have been purchased defensively in order to keep it out of the hands of a competitor.
Liquidation has failed to become death blow for more and more retail brands. The Sharper Image name, for example, has been placed on bathmats, neck pillows and electronic accessories, available for sale at one-time competitors such as Macy's [M
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], J.C. Penney [JCP
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] and Bed, Bath & Beyond [BBBY
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].
Linens 'n Things is selling products once again through a Web site, lnt.com.
Hilco Consumer Capital and Gordon Brothers own the Sharper Image, the Linens 'n Things and Bombay furniture brands.
Systemax [SYX
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], of Port Washington, N.Y., has also resurrected the CompUSA brand and Circuit City brands. Both brands are back in business, this time selling products on the Web.
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