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KB Toys, a toy-store chain owned by Denver-based retailer Parent Co., will continue to accept its gift cards in New York and Connecticut until the close of business on Jan. 11. Parent filed for bankruptcy protection last month. New York Attorney General Andrew M. Cuomo announced Dec. 23 that his office had reached an agreement with KB Toys in which the toy store would continue to honor its gift cards in New York. In a statement, Cuomo's office said the company had $12 million in unredeemed gift cards outstanding and that the bankruptcy court authorized KB Toys to honor its cards. Connecticut Attorney General Richard Blumenthal issued a statement Dec. 31 warning shoppers that they must use their KB Toys gift cards by Jan. 11. Parent officials did not return calls for comment, and it is unclear whether KB Toys will continue to honor its cards in all of its stores or just at those in New York and Connecticut. However, the KB Toys Web site says shoppers can use gift cards bought at stores at local stores but not online. However, online gift certificates purchased directly from the site can still be used at the Web site. "Although KBtoys.com is in partnership with the KB Toys family, we operate as separate businesses," the site says. KB Toys has 461 stores in all 50 states.
