kb toys exited chapter 11 bankruptcy in august 2005, with 90 percent of its ownership under pkbt holdings, an affiliate of prentice capital management. bain capital had attempted to retain control of kb toys, which was instead awarded to prentice capital by a bankruptcy judge. through the bankruptcy emerging plan, prentice capital invested $20 million into kb toys. gregory r. staley, a former president for toys "r" us' u.s. and international units, was named as kb toys' new chief executive officer. the company had 640 stores. in august 2007, the company announced a business strategy that included layoffs at its headquarters in pittsfield, massachusetts. that november, the company had 566 stores and began closing 122 of them.