KB Files Plan of Reorganization
Pittsfield, Mass., KB Toys, Inc. and a committee of its creditors have filed a joint reorganization plan that would transfer ownership of the company to a New York City investment firm, unless a better offer is received. Under the plan, an affiliate of Prentice Capital Management, LP will invest $20 million in cash and in a $25 million credit facility. The company is seeking in the U.S. Bankruptcy court of Delaware to hold an auction to solicit other offers. If the Prentice offer goes through, it would add to a $150 million credit line already secured from a syndicate led by Bank of America.
The toy retailer filed for bankruptcy in January 2004, blaming price-cutting by major discount retailers during the 2003 holiday season. KB currently is owned by Bain Capital of Boston and a group of KB executives, including CEO Michael L. Glazer.
Icahn Discloses Stakes in Rite Aid, HP
Washington, Active financier Carl Icahn today revealed that he now holds stakes in Rite Aid, Siebel Systems and Hewlett-Packard. The billionaire investor, who made headlines this week after he and two allies successfully replaced three Blockbuster board members, also reported that he no longer holds stakes in insurance broker Aon Corp and paper-product company Temple-Inland Inc. Icahn disclosed his stakeholdings today as required by the Securities and Exchange Commission.
The Pantry Completes Acquisitions
Sanford, N.C., The Pantry, Inc. today said it has completed the acquisition of three convenience stores and one development site in Charleston, S.C.
“These stores will add to our existing presence of approximately 50 stores in the attractive Charleston market,” said Peter J. Sodini, the Pantry’s president and CEO, in a statement. “We will immediately convert the stores to our Kangaroo Express banner with one store offering BP gas and the other two stores offering our private-label Kangaroo gas.”