September 4, 2009, 12:00 AM

Toys ‘R’ Us acquires KBToys.com

Though details such as the purchase price were not disclosed, Toys ‘R’ Us was the winning bidder for KBToys.com and its related e-commerce assets. It`s the third major purchase of an auctioned retail brand by Toys ‘R’ Us this year.

Katie Evans

Managing Editor, International Research

Toys ‘R’ Us Inc. is adding another brand to its growing e-commerce portfolio.

The retailer, No. 39 in the Internet Retailer Top 500 Guide, has purchased the KB Toys brand, including all e-commerce assets and related intellectual property.

KB Toys filed for Chapter 11 bankruptcy in December and immediately began to close down its network of 460 stores. KBToys.com remained online until The Parent Co., which ultimately sold its eToys.com, BabyUniverse.com and ePregnancy.com to Toys ‘R’ Us in February, also filed for bankruptcy and ceased operations.

Though details such as the purchase price were not disclosed, Toys ‘R’ Us was the winning bidder for KBToys.com and related assets. The sale, which has been approved by U.S.Bankruptcy Court for the District of Delaware, was completed at an auction directed by Streambank LLC, a liquidation specialty company.

“This acquisition is another example of how we are playing to win by aggressively pursuing opportunities to advance our specialist position in the toy and baby products industries,” says Toys ‘R’ Us. “The family of brands is well-positioned to be a strong competitor and capture more toy-buying dollars in the months and years ahead.”

The acquisition of KBToys.com is the third major purchase of auctioned retail brands by Toys ‘R’ Us this year. In addition to eToys.com, BabyUniverse.com and ePregnancy.com from The Parent Co., Toys ‘R’ Us in May purchased FAO Schwarz, a multichannel retailer best known for its lavish toy emporium on Fifth Avenue in New York City. Toys ‘R’ Us says it will operate FAO Schwarz as a separate brand. The companies did not reveal a purchase price.

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