KB Toys files Bankruptcy - Begin Liquidation sales in the middle of holiday season

As the Great Depression II marches on, some weird things are happening. Like this announcement from KB Toys:

Reuters

They are filing backruptcy, closing all stores, and will begin liquidation sales in the middle of the holiday season. Wow. Immediately I think Toys 'R Us is going to suffer and I should short it. But apparently it isn't listed. I just find it completely amazing they are going to liquidate right before Christmas.

So my second thought was that there might be some good bargains on toys right before Christmas. Of course I thought that about Mervyn's too when it said it was closing the store near me. Now Mervyn's was very poorly run store. I would go there and pick up some pants marke down to say $7 for a baby. I go to the register, and it's rung up as $3. And they wonder why they couldn't make money.

When I first saw the sign twirler outside with a sign, it said

"Everything 20-40% off"

So I went to check it out. Turns out, someone smart must've been running the liquidation because all the merchandise was no more expensive than before and that's with the mark down. So I left. Next time I saw a sign it said:

"Everything 20-50% off"

Then:

"Everything 30-60% off"

Then:

"Everything 30-70% off"

Then:

"Everything 40-70% off"

Then:

"Everything 50-80% off"

Then:

"Everything $19.99 or below"

I may have missed some signs. But I never went back. The initial 'lack of deals' turned me off.

Bottomline, know the prices of the toys you want before you visit a KB Toys liquidation sale.