Kids Mart Files for Chapter 11

City of Industry-based Kids Mart Inc., which operates 146 children’s retail apparel stores, has filed for Chapter 11 bankruptcy protection and, according to its attorney, will liquidate its assets if it cannot find a buyer. The bankruptcy filing listed assets of $13.8 million and liabilities of $29.8 million. Kids Mart has lost money since Chief Executive Bernie Tessler’s LFS Acquisition Corp. acquired the Little Folks and Kids Mart business from Woolworth Corp. and its Kinney Shoe Corp. in May 1995. In September, Kids Mart said it would close 97 stores and fire 600 workers. The company reported net losses of $23 million for the nine months ended Oct. 26. At that time, the company said it was unlikely it could continue as a going concern without additional financing, which it was doubtful it could secure. Company executives declined to comment on their plans.