PITTSFIELD, MA: KB Toys has petitioned the US Bankruptcy Court in Delaware to authorize retention of Stanton Crenshaw Communications as its PR consultant. The agency will help the toy retailer, which filed for Chapter 11 protection in January, manage communications during its bankruptcy proceedings. Stanton, which has worked with KB Toys before on consumer marketing projects, began working on the bankruptcy in December. As is the case with most bankruptcy assignments, the company did not hear a competitive pitch.
In January, KB said it would close at least 375 stores and lay off about 3,500 employees as part of its restructuring effort.
The company said its woes stemmed from the price war during the 2003 holiday season and increasing price competition during the rest of the year. In recent years, traditional toy retailers like KB have suffered as giant low-cost retailers, such as Wal-Mart, have emerged as major competitors.
KB Toys is the nation's largest combined mall-based and online specialty toy retailer.