KB Toys Inc. is liquidating its shelves while under Chapter 11 bankruptcy protection.
The toy retailer said liquidation was its best move to maximize the value of the business. It petitioned for bankruptcy protection in a Dec. 11 filing with U.S. Bankruptcy Court in Wilmington, Del.
``The liquidity crisis is directly attributable to a sudden and sharp decline in consumer sales due to macro-economic forces,'' said KB Toys vice president and controller Raymond Borst in an affidavit.
The company's sales fell 19.8 percent between Oct. 5 and Dec. 8, compared to the same period a year ago.
Pittsfield-based KB Toys listed assets of $241 million and liabilities of about $362 million. Its 461 stores and wholesale business generated annual sales of about $480 million. It employs about 4,400 full-time workers and more than 6,500 seasonal employees.
