KB bankruptcy not surprising given economy, customer says

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KAHULUI - Customers at the KB Toys store at Queen Ka'ahumanu Center on Friday weren't shocked by the store's recent bankruptcy filing and one customer described the store's efforts to liquidate its assets as just "average."

Sadie Ferris of Hana said she was "not surprised" by KB Toys filing for bankruptcy Thursday.

But she is surprised that a lot of other businesses have not also filed for bankruptcy during these volatile economic times.

Mildred Kaaikala, a retired nurse, said she decided to come down to the store and check out the sales Friday after reading about the bankruptcy in the newspaper.

KB reported this week that it would begin liquidating its stores via immediate going-out-of-business sales.

But Kaaikala was not impressed with the store's reduced prices.

"Average sale," she said as she exited the store.

She did buy a Lego set for her grandson that was reduced from $48 to $38, and she received a $3 discount on a baby toy game.

KB workers said a sale began Friday, with 30 percent off everything in the store except on specials already featured in a flier that came out Thursday. The flier advertises a "Blowout Sale" with doorbusters Thursday through Sunday. It also advertises buy-two-get-one-free specials along with discounts from $5 to $20.

A Queen Ka'ahumanu Center official had no comment on the bankruptcy, and the KB store manager referred media inquiries to the store's Mainland office in Pittsfield, Mass. No one could be reached there Friday afternoon, Hawaii time.

The 86-year-old company said it went into debt because of the decline in consumer sales and the poor economy. It filed for Chapter 11 protection, which allows a company to retain more control over selling off its assets.

It's the second time in four years that the company has filed for bankruptcy.

The company decided the most viable way to cover its debt was to begin liquidating its stores via immediate going-out-of-business sales. Although photographs of stores on the Mainland showed closing signs in KB windows, the closure wasn't apparent at the Ka'ahumanu store, with no signs in windows.

"The economy isn't as great anymore," said customer Leeani Collins of Kahului, who said she didn't know of the bankruptcy filing.

Collins said that some toy prices at KB are higher than those at Wal-Mart. But she said she probably would return to KB later Friday night to buy her 4-year-old daughter, Shayla, a dollhouse she was eyeing earlier in the day.

Shayla said she would also want mermaid toys for Christmas.

Ben Raymondo of Makawao said he also shops at Wal-Mart for toys, but on Friday he bought two arts and crafts sets for $17.99 apiece.

He, too, wasn't surprised by the bankruptcy.

"That's the way the economy is going," he said.

Kaaikala, is also very wary about the economy and told her family not to buy any gift cards for Christmas because she's concerned that the cards could become invalid if the stores close.

Melissa Tanji can be reached at mtanji@mauinews.com.