This is the third time since 2004, they, as both KB and FAO Schwartz, did a twofer in 2004.

Filing for bankruptcy as a tow store less than 3 weeks before Christmas?

Looks like liquidation this time.

Here is the obligatory scare quote:

Sales were little changed from Feb. 3 until Oct. 4, KB Toys said. Since then, sales have dropped almost 20 percent, the company said.

Sales fell as the Xmas season buying frenzy ramped up….Not good.