In 1999, the company operated 1,324 stores across the United States and was the second-largest toy retailer in the U.S., but it later declared bankruptcy in both 20 before going out of business on February 9, 2009.
Retail sales began in the 1970s, under the name Kay-Bee Toy & Hobby. The company opened a wholesale toy store in 1946, and ended its candy wholesales two years later to focus entirely on the toy industry. The company was founded in 1922 as Kaufman Brothers, a wholesale candy store. K♻ Toys (also known as Kay Bee Toys) was an American chain of mall-based retail toy stores.
