KB Toys Sells Online Assets to D.E. Shaw
KB Toys Inc., the largest U.S. mall-based toy retailer, sold its Internet assets to investment firm D.E. Shaw for $7.4 million as it tried to emerge from bankruptcy protection.
D.E. Shaw, a New York-based firm that this year bought FAO Inc.’s FAO Schwarz stores in New York and Las Vegas, also will make royalty payments of at least $500,000 a year for the next three years, the firm said. The purchase includes inventory, equipment and the EToys trademarks.
D.E. Shaw also will provide a $20-million line of credit to EToys Direct, which runs the EToys.com website.
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