December 12, 2008

KB Toys in Lakewood Center to close

KB Toys filed for chapter 11 Bankruptcy on 12/11/08, even before the Christmas holiday shopping season ended. It will be closing its Lakewood Center Mall location. For a toy store to close a few weeks before Christmas tells you how bad things are. It has been said that the next waive of the recession will affect credit cards and commercial real estate. Bad news for Lakewood Center Mall. Costco also reported flat earnings this week, so expectations are really low for the delayed opening of Costco Lakewood Center in mid February 2009 (if they can even meet that date). KB's spokesperson stated: "In order to maximize value of the assets through the store closing sales, it is imperative [KB] be authorized to conduct the store closing sale ... as soon as possible in order to take advantage last two weeks of the holiday selling season," KB filed bankruptcy three years earlier. Same-store sales have fallen 19.77% compared with last year. KB has 277 mall-based stores, 114 KB Toys Outlet stores, 40 KB Toy Works, and about 30 temporary holiday stores.

I guess someone will need to keep a tally sheet for Mall and store closings after January. Likely all the Costco opening will do in February 2009 will be making up for other store closings with no net gain or even a loss in sales tax revenues for the Mall.

Lakewood Accountability Action Group™ LAAG | | Lakewood, CA
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