Dec. 13--KB Toys, B. Moss, Gap Outlet and Whiteall Jewelers (formerly Friedman's Jewelers) are all leaving the Crossroads Mall, according to a mall official.

"Unfortunately, we are being affected by national decisions," said Rhonda Willson, marketing director for the mall near Beckley. "Although we have a strong local economy and the mall has had a very good year, the national economy is not doing as well."

KB Toys filed for bankruptcy protection for the second time in four years Thursday and plans to begin going-out-of business sales at its stores immediately.

The 86-year-old company said in a filing that its debt is "directly attributable to a sudden and sharp decline in consumer sales" because of the poor economy, according to a company press release.

In the filing in U.S. Bankruptcy Court in Delaware, KB Toys said that between Oct. 5 and Dec. 8, sales in stores open at least one year, a key retail metric known as same-store sales, fell nearly 20 percent.

The company said it considered its alternatives and decided the most viable way to cover its debt was to begin liquidating its stores via immediate going-out-of-business sales. KB Toys also plans to sell its wholesale distribution business, according to the filing.

Filing for Chapter 11 protection rather than Chapter 7 liquidation allows a company to retain more control over selling off assets. Under Chapter 7, the court immediately appoints a trustee to take over the case.

KB Toys declined to comment beyond what was in the filing.

B. Moss Clothing Co. Ltd. expects to begin going-out-of-business sales at all 70 of its stores starting Friday after 69 years in business.

The Secaucus, N.J.-based women's specialty chain filed a voluntary Chapter 11 petition Tuesday in a New Jersey bankruptcy court to conduct an orderly liquidation of the business. According to court papers, the retailer intends to conclude the GOB sales at 60 of its stores by Dec. 31, with the balance to be completed by Jan. 15. The stores are in shopping malls throughout 16 Eastern and Midwestern states.

Willson said that nationally Gap has decided to close its outlet stores in small market areas, like Beckley.

"Again, it's a national decision," she said. "My understanding is that the Gap Outlet in the mall was doing well."

Also leaving Crossroads Mall is Whitehall Jewelers.

"We are working at bringing in stores consumers in our area want," Willson added. "We brought in Kitchen Collections this holiday season and it was well received locally."

Willson said Crossroads Mall's sales were up in October.

"Those are our latest statistics," she said.

Willson said Crossroads Mall is one of the best sales performing malls in the Pennsylvania-based PREIT Services LLC.

"Our company has over 40 malls, which gives us the national connections to better attract more stores to our malls," she said. "We are always looking for new businesses to come to the mall."

Willson says it's not uncommon for stores to come and go as trends come and go, but admits the national recession played a role in these recent decisions.

"I'm sure this is not unique to Crossroads Mall," she said. "These stores are part of national chains and those decisions are not being made locally. We hope to replace these stores as soon as possible after they close."

Willson said she didn't have exact closing dates for the stores, but it will most likely be after the holiday shopping season.

Amid the consumer spending slowdown and recession, these four stores join a growing list of retailers filing for bankruptcy protection. Others include Mervyns LLC, The Sharper Image, Steve & Barry's, Linens 'N Things and Circuit City Stores Inc.

-- E-mail: fpace@register-herald.com

-----

To see more of The Register-Herald or to subscribe to the newspaper, go to http://www.register-herald.com.

Copyright (c) 2008, The Register-Herald, Beckley, W.Va.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

OTC-PINK:WHJHQ, OTC-PINK:SHRPQ, NYSE:CC,

A service of YellowBrix, Inc.