Consolidated Stores to Shed KB Toy Unit

Consolidated Stores Corp., a retailer whose stock has lost more than half its value in the last year, said it will shed its KB Toy unit as part of a restructuring plan to boost sales and profit. Consolidated may sell, spin off or liquidate the toy business to separate it from the close-out merchandise chains, which include Pic ‘N’ Save and Big Lots. Company officials couldn’t be reached for comment. Chief Financial Officer Michael Potter, 38, also was promoted to chief executive and president. The company canceled a $210-million initial public offering for the online division two weeks ago. The KB Toy business will be shed in six months to a year, the company said. Columbus, Ohio-based Consolidated also said William Kelley, 54, will remain chairman until the meeting of the board of directors in August, when he will hand over the title to Potter. Shares of Consolidated rose 81 cents to $13.94 in NYSE trading. The news was released after the close of U.S. markets.