Pittsfield, Mass., KB Toys Inc. got approval from U.S. Bankruptcy Court for reorganization. The plan involves the investment of $20 million by KBT Funding LLC, an affiliate of Prentice Capital Management LP.
The court made Aug. 12 the deadline for creditors to vote on the plan and scheduled a confirmation hearing on Aug. 18. If approved, KBT will gain control of the 650-store toy retailer. The company expects to emerge from bankruptcy before the 2005 holiday season.