After a business closes, its intellectual property- domains, trademarks, logos, etc.- still have value and can be sold. Bankrupt toy retailer KB Toys took advantage of this to pay its creditors when it sold its trademarks, logos, and KBToys.com domain for £1.25 million ($2.1 million USD) yesterday.
Retail operator CE Stores won the auction. The domain and other auctioned items are desirable because they are already well-known to consumers. KB Toys used to have stores in malls all over the United States, and the buyer can capitalize on the brand‘s existing reputation by launching a new store under the defunct name.
Earlier this year, Toys.com, the former home to a large Internet toy retailer, was bought by Toys-R-Us for £3.1 million ($5.1 million USD).
Source | Reuters
Photo | Flickr