KB Toys Inc. has filed for Chapter 11 bankruptcy protection, for the second time in four years on Thursday, with plans of closing its chain of stores.

The 86-year-old company cited sharp declines in consumer spending for the filing.

KB Toys, one of the largest U.S. toy retailers said in the filing that its debt is "directly attributable to a sudden and sharp decline in consumer sales" because of the poor economy.

The company operates 277 mall-based stores, 40 KB Toy Works stores which are mainly in strip malls, 114 outlet stores and 30 short-term holiday stores. It has 4,400 full-time employees and 6,515 seasonal employees.