KB Toys bankruptcy news is now translating into a KB Toys store closings listing, and combined with the mysterious Office Depot store closing list, the news is bad for local strip malls and retail workers.
KB Toys Bankruptcy Affects Various Locales
The Associated Press reports that the KB Toys bankruptcy has the potential to affect 4,400 full time employees and 6,515 seasonal employees. KB Toys store closings will see an end to 277 mall stores, 40 strip mall stores, 114 outlet stores, and also 30 temporary store fronts that only spring up during the holiday season.
KB Toys Store Closings List to Hit California Hard
In California, KB Toys operates 12 KB Toy Outlet stores, one KB Toy temporary store front, and 31 KB Toy stores. While mall stores, such as the one at the Lakewood Mall, were notoriously small, they nonetheless provided quite a draw to other merchants that might not have otherwise gotten the foot traffic.
In the same vein, any mall store that goes out of business is just another nail in the coffin to any mall, especially strip malls. With “going out of business” sales starting immediately, it is anyone’s guess when employees will finally be let go because of KB Toys store closings.
Office Depot Store Closing List Shrouded in Mystery
Quoting the Associated Press, Forbes details the continued fall of Office Depot stock in the wake of the announcement that an office depot store closing list will result in a loss of 2,200 jobs and a 9% decrease of existing Office Depot stores. According to Reuters (also quoted by Forbes), this translates into a closing of 126 Office Depot stores.
On the chopping block are 112 stores that fail to meet their performance guidelines, 14 stores which have expiring leases in 2009, and 33 distribution facilities that are used to ship office chairs, mouse pads, and other supplies to stores or consumers via direct order.
Unfortunately, Office Depot is not coming right out, saying where the actual closures will be. The closest to a probable Office Depot store closing list is the Sacramento Business Journal which discloses that of the to be closed venues, there are “45 in the central United States, 40 in the Northeast and Canada, 19 in the West and eight in the South.”
Sources: http://www.google.com/hostednews/ap/article/ALeqM5ixmweyZKNsf_naElFXtszcmotoEAD950NK700; http://www.kbtoys.com; http://www.forbes.com/feeds/ap/2008/12/12/ap5815377.html; http://www.forbes.com/reuters/feeds/reuters/2008/12/10/2008-12-10T164840Z_01_N10314764_RTRIDST_0_OFFICEDEPOT-UPDATE-3.html; http://sacramento.bizjournals.com/sacramento/othercities/nashville/stories/2008/12/08/daily17.html