KB Toys to Pay $5.4 Million for EToys’ Assets

KB Toys Inc., a U.S. toy store chain, agreed to pay about $5.4 million for the inventory of bankrupt Web retailer EToys Inc. Closely held KB Toys won bidding for seven of 11 lots of inventory and will sell the items at a discount on KBkids.com and at KB Toy Outlet and KB Toy Works stores, a spokesman said. The Pittsfield, Mass.-based company is interested in other assets, including EToys’ Web address, he said. EToys’ assets were put up for auction after the Santa Monica-based company filed for Chapter 11 bankruptcy protection last month, listing $285 million in debts. EToys, founded in 1996, never made a profit and shut down after failing to get funding to stay in business. Scholastic Corp., the U.S. publisher of the Harry Potter series of children’s books, canceled an $8-million bid for the inventory last month.