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Store of Knowledge
Store of Knowledge
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The Store of Knowledge Inc. (SOK) was an American retail chain selling educational items and children's toys. Owned and operated by a company of the same name based in Cerritos, California, SOK was in business between 1994 and 2001. At its closure, it operated 91 stores in 25 states and Washington, D.C.

Key Information

The majority of SOK stores were operated in association with public television stations in the local areas where they were constructed, though later SOK built or purchased some stores with no public television affiliation. The chain had 27 of these partnerships throughout the United States. Deals with local stations varied but typically involved partial ownership of the store and a share of proceeds, attractive at a time when public stations nationally were looking for new income sources in response to potential federal funding cuts. The chain was co-owned by public television station KCET in Los Angeles; Lakeshore Learning Materials; and private equity firm Riordan, Lewis & Haden.

Despite space in premier malls in major markets and having outlasted rival chain Learningsmith (later acquiring some of its leases), SOK failed at the same time as some of its direct competitors, notably Zany Brainy, amid a soft economy and a downturn in the market for educational children's toys.

Establishment

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In 1991, a similar chain known as Learningsmith began operating. Learningsmith had similar connections to public broadcasting elsewhere; Boston's WGBH-TV was a backer, and it also was allied with WNET in New York, WETA-TV in Washington, and WCNY-TV in Syracuse, New York.[1] The chain approached KCET about opening stores and receiving royalties, but the station was more interested in creating its own concept that it would own.[2] Leonard Straus, former chairman of Thrifty Drug and a member of the board of KCET, had suggested the idea of starting an educational materials store. Straus brought in Lakeshore Learning, and the two formulated the concept for the chain.[3] Public television stations would provide community goodwill and a built-in shopper base; Lakeshore supplied merchandising and warehouse services; and Riordan, Lewis & Haden provided the venture capital.[2]

The first store, a 4,500-square-foot (420 m2) unit in the Glendale Galleria in Glendale, California, opened in April 1994.[2] By January 1995, KCET had opened four units in the Los Angeles metro area.[4] While KCET had conceived of the chain as a way to raise money amid a challenging recession in Southern California,[5] threatened cuts to public broadcasting after Republicans took control of the United States House of Representatives in 1994 spurred additional interest.[4] It was also a profitable venture for KCET in its first holiday season.[6]

National expansion

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The first units in other markets debuted in 1995. On May 5, SOK and WHYY-TV in Philadelphia opened the first location beyond the KCET area and the first of a planned four area stores at Willow Grove Park Mall.[7] In August, the first two WTTW Stores of Knowledge debuted in Chicago out of a planned eight;[8] in October, a store in alliance with Oregon Public Broadcasting debuted at the Clackamas Town Center in suburban Portland.[9]

As Learningsmith backed off from its previous affiliations with public television and underwent an internal restructuring,[10] two of the large PBS member stations that worked with it started Stores of Knowledge: in October 1996, WNET opened its first unit in the Garden State Plaza,[11] and WETA partnered with the chain to start the first of four units in the Washington, D.C., area in April 1997.[12] There were also two notable holdouts. SOK expanded into the Seattle area even though it was unsuccessful on two occasions to encourage KCTS-TV there to participate; KCTS was already running a for-profit store.[3] It also opened a store at the Wolfchase Galleria in Memphis, Tennessee, though WKNO and SOK never reached an agreement; this was the first non-affiliated store in the chain.[13] Other new markets added in 1996 and 1997 included Atlanta,[14] Kansas City,[15] Miami,[16] Minneapolis (at the Mall of America),[17] and Pittsburgh,[18] while 1998 and 1999 brought new metropolitan areas including Phoenix[19] and Tampa[20] and Orlando, Florida.[21] Between May 1997 and May 1998, the chain's headquarters moved within the Los Angeles area, from Carson to Cerritos.[10][22]

In 1999, Learningsmith filed for bankruptcy and began liquidating its 87 stores. After contemplating acquiring as many as 64 leases,[23] SOK acquired the leases of 21 units of Learningsmith for $920,000, (~$1.59 million in 2024) reopening the locations as Stores of Knowledge in January 2000.[24] The Learningsmith leases acquired included locations in additional markets where the company did not have ties with the public television station, such as Nashville.[25] In some cases, they expanded the chain's presence in existing markets; the Learningsmith store at MacArthur Center in Norfolk, Virginia, became a Store of Knowledge, joining another in Virginia Beach affiliated with WHRO-TV.[26]

The chain also expressed interest in its final year in expanding its transportation offerings, such as model trains. It attempted to buy the 56-unit Great Train Store chain but failed to reach an accord before the company was liquidated. As a test, it set aside a quarter of the Orland Square Mall store in south suburban Chicago as a "Transportation Station" and considered expanding it into a separate chain of stores. CEO Jim Berk believed that consolidation in the space would leave mall vacancies and that landlords would be receptive to a new concept from an existing retailer.[27]

Bankruptcy and liquidation

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In early 2001, the chain began to have cash flow issues after a poor holiday season and began "scrambling for capital", in Berk's words.[28] The manager of the Store of Knowledge in Indianapolis, in association with WFYI, told the Indianapolis Business Journal that the first sign of trouble was when restocking orders were ignored.[29] Additionally, a third attempt within a month to purchase the mall stores of the bankrupt Natural Wonders chain was rejected in March 2001, preventing Store of Knowledge from achieving critical mass in its store base.[30][28] The failure to acquire the Natural Wonders stores led president and CEO Berk to defer his salary and the chain to defer $2 million in royalty payments to participating stations.[31]

On March 28, 2001, Store of Knowledge filed for Chapter 11 bankruptcy protection. It immediately closed 21 stores on April 1 and began liquidating the remaining 70.[32] The move to wind down the chain came just weeks after Berk told trade publication Gifts & Decorative Accessories that it had no plans to open or close stores in the immediate future.[28] The $30 million (~$50.6 million in 2024) liquidation concluded on June 8, 2001.[33] At the time the chain was slumping, it was part of an overall market trend that also saw a bankruptcy filing for Zany Brainy, increased competition from other retailers, and a decrease in new educational software titles for computers.[34] Kurt Barnard, editor of industry newsletter Barnard's Retail Trend Report, noted that regional shopping malls were not appropriate places for educational toy stores with their high rents and mismatched customer bases.[35]

At bankruptcy auction, the competitor Discovery Channel Store chain acquired 11 leases.[33]

Public television involvement

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With the exception of KCET, which owned part of the chain itself and thus benefited financially from the opening of new stores everywhere in the United States,[10] individual public television stations generally owned 15 to 25 percent of the store[12][6] and received royalties or a one-percent cut of sales. A typical store grossed $2 million a year in sales.[14] In exchange, stations provided promotional assistance.[15] However, some early proceeds went toward expansion of the chain.[36] Stores typically provided information and a telephone connection for prospective new members to the affiliated station.[12]

Annual profits generally ranged from $18,000[19] to $100,000 a year for stations.[33]

Partners

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At the time the chain closed, 27 public television stations were associated with Store of Knowledge.[37] The chain operated 91 stores, of which 12 had no affiliation with a public TV station in their area.[38]

References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

The Store of Knowledge Inc. was an American retail company that operated a chain of specialty stores focused on educational toys, games, puzzles, books, videos, and science kits designed to foster learning in children.
Established in California, the company launched its first store in partnership with KCET, a PBS affiliate, at the Glendale Galleria in April 1994, marking the beginning of a model that involved collaborations with over 20 public broadcasting stations nationwide to locate outlets in shopping malls.
By the late 1990s, the chain had expanded to approximately 70 locations, capitalizing on the growing demand for edutainment products that blended entertainment with educational value.
However, facing competitive pressures in the educational toy market, Store of Knowledge filed for Chapter 11 bankruptcy protection in early 2001, leading to the closure of numerous stores and its website, after which the company ceased operations.

Founding and Early Development

Establishment

The Store of Knowledge emerged as a retail concept in the early amid financial pressures on public television stations, with the idea originating from Leonard Straus, a board member of (a Los Angeles-based affiliate) and former chairman of Thrifty Drug Stores, who advocated for a dedicated outlet selling educational materials. Straus's proposal aligned with KCET's need for alternative revenue streams beyond traditional broadcasting donations, as the station grappled with budget shortfalls during that period. The venture was formally structured as a joint enterprise incorporating on August 23, 1993, involving KCET, educational supplier Lakeshore Learning Materials, and the investment firm Riordan, Lewis and Haden, with each partner holding a one-third ownership stake to share risks and expertise in content, merchandising, and financing. This collaboration leveraged KCET's access to PBS-licensed products, such as books, toys, and science kits tied to educational programming like Sesame Street and Nova, while Lakeshore provided curriculum-aligned items for schools and families. The initiative was overseen by KCET executives including Tim Conroy, vice president for marketing and business development, who later chaired the venture's board, and Gary Ferrell, the station's chief financial officer. The first Store of Knowledge location opened on April 1, 1994, at the shopping mall in , marking the chain's operational debut with an emphasis on high-quality, intellectually stimulating merchandise rather than mass-market toys. Initial expansion targets included reaching 16 outlets by 1996, primarily in , to capitalize on regional demand for edutainment products amid growing parental interest in tools. The stores differentiated themselves through curated selections of puzzles, globes, microscopes, and media tie-ins, positioning the brand as a bridge between public media content and physical retail experiences.

Initial Store Openings and Concept

The Store of Knowledge concept emerged as a for-profit retail initiative partnering with local public television stations to operate mall-based stores selling educational toys, kits, books, puzzles, and merchandise linked to programming. These outlets aimed to capitalize on the stations' established reputation for educational content, presenting the stores as extensions of public broadcasting's mission to foster learning while generating revenue through sales. The model involved the retail company handling operations and inventory risks, with stations licensing their branding—such as "KCET Store of Knowledge"—in exchange for a profit share, thereby avoiding direct financial exposure. The chain's first store opened in April 1994 at the Glendale Galleria in Glendale, California, under the KCET banner, affiliated with Los Angeles public station KCET-TV Channel 28. Spanning 4,500 square feet, it stocked items like telescopes, globes, and character toys from shows such as Sesame Street, targeting families interested in intellectually engaging products over mainstream entertainment toys. Initial sales outperformed expectations, with the Glendale location reporting 15% higher revenue than projected by late 1994, validating the partnership approach. This debut prompted rapid follow-on openings for , including three additional Los Angeles-area stores in 1994 and a fifth planned shortly thereafter, establishing a regional cluster to build familiarity. The emphasized curation of "brainy" —microscopes, models, and literature sets—differentiated by PBS ties, which helped attract shoppers valuing substantive play over fleeting trends. By framing stores as community educational hubs, the model sought to drive foot traffic through station loyalty and mall convenience.

Business Operations

Products and Merchandise

The Store of Knowledge offered a range of educational toys, games, and learning materials aimed at children from age through adults, emphasizing interactive and skill-building items over traditional playthings. Core product categories included , puzzles, board games, science-related kits, and such as public television videocassettes and early CD-ROMs designed for educational content. Merchandise often featured ties to , including items inspired by programs and station-specific branding from partners like . Specific examples highlighted the store's focus on hands-on learning, such as cardboard "bug boxes" priced at $12.95, which combined educational information about with interactive elements to engage young users. Suppliers like provided much of the inventory, ensuring products aligned with developmental and scientific themes. By the late , individual stores stocked around 4,500 distinct items, blending children's toys with adult-oriented resources like cooking books—evidenced by events such as Julia Child book signings. The assortment prioritized quality educational value, drawing from public television's content ecosystem to promote , , and problem-solving, though it avoided mass-market fads in favor of durable, curriculum-supportive goods. This approach differentiated the chain from general toy retailers, appealing to parents seeking enriching alternatives.

Partnerships with Public Television Stations

The Store of Knowledge established partnerships with public television stations primarily to leverage the educational branding of for retail expansion, creating joint ventures that allowed stations to share in revenues from merchandise sales focused on , learning toys, and PBS-affiliated products. These collaborations typically involved forming subsidiaries co-owned by the station and Store of Knowledge Inc., enabling localized store operations while aligning with the stations' nonprofit missions to promote educational content. The inaugural partnership launched in April 1994 with KCET, the public television station in Los Angeles, opening the first KCET Store of Knowledge at the Glendale Galleria in California as a revenue-generating initiative for the station. This model quickly expanded, with Store of Knowledge Inc. entering retailing agreements with additional stations, such as WETA in Washington, D.C., by May 1997, where the partnership facilitated store operations emphasizing educational media tie-ins. In Chicago, WTTW formed WTTW Store of Knowledge Inc. as a subsidiary by September 1995, targeting adult consumers interested in learning-oriented goods. By the late 1990s, these alliances had grown to encompass dozens of public stations nationwide, with Store of Knowledge Inc. managing for-profit retail in partnership with regional nonprofits to distribute items like science kits and books complementary to public television programming. The structure provided stations with a profit-sharing mechanism to fund operations, while stores benefited from the credibility of affiliations to attract families seeking enriching products. However, as the chain faced financial pressures in the early 2000s, these partnerships contributed to operational complexity, with some stores operating independently of station ties.

Expansion and Peak Operations

National Rollout

The Store of Knowledge expanded nationally by partnering with public television stations across the United States, leveraging their brand credibility to establish co-branded retail locations in shopping malls. Following the April 1994 opening of the inaugural KCET Store of Knowledge at Glendale Galleria in California, the chain quickly added three more outlets in the Los Angeles area by January 1995. This initial phase demonstrated viability, prompting broader rollout through alliances with stations like WTTW in Chicago, where a store debuted in September 1995 targeting educational toys and media for families. By mid-1997, partnerships had extended to stations such as WETA in , with a new outlet opening in April at mall, offering over 5,000 items including puzzles, videos, and science kits. The model emphasized station equity—such as name licensing and promotional tie-ins—while Store of Knowledge handled operations and merchandising, enabling rapid scaling without full corporate ownership of all sites. In September 1997, the chain reported 38 stores operating for 20 affiliates, reflecting aggressive growth from the 1994 baseline. Further expansion in 1997 included locations at high-traffic venues like the in , alongside competitors in the educational retail niche. This nationwide push capitalized on demand for hands-on learning products, with projections in late 1995 anticipating nearly 30 stores by year-end 1996, a target surpassed amid favorable consumer interest in edutainment. By peak operations, affiliations reached 27 stations, supporting stores in diverse markets from to the East Coast.

Store Network and Locations

The Store of Knowledge expanded its network through licensing and agreements with public television stations, which allowed stores to adopt local PBS affiliate branding—such as the Store of Knowledge or WETA Store of Knowledge—while the company managed operations and merchandising in exchange for revenue sharing with the stations. The inaugural location opened on April 14, 1994, at the shopping mall in , as a partnership between Store of Knowledge Inc. and , the Los Angeles public television station. By late , the chain projected nearly 30 stores operational by the end of 1996, focusing on educational merchandise tied to themes. By September 1997, the network had grown to 38 stores across 20 public television affiliates nationwide, with continued emphasis on mall-based retail formats to leverage foot traffic from family shoppers. Examples included the WETA Store of Knowledge at the Fashion Centre at Pentagon City in Arlington, Virginia, opened in April 1997, and the WHRO Store of Knowledge at in , launched in September 1997 to support the local station's programming initiatives. Further growth positioned the chain at approximately 92 stores by 2000, primarily in regional shopping malls such as Kenwood Towne Centre in Cincinnati, Ohio; ; and , enabling broad national coverage while maintaining the educational, PBS-aligned product focus.

Decline and Bankruptcy

Financial Pressures and Challenges

Store of Knowledge Inc. encountered mounting financial pressures in the lead-up to 2001, stemming from its aggressive expansion to 91 mall-based stores specializing in educational products, which strained amid high fixed costs and royalties paid to station partners. The company's model relied on station affiliations for branding and equity stakes, but operational funding fell entirely on Store of Knowledge, leaving thin margins vulnerable to sales fluctuations. A critical escalation occurred with the failed acquisition of Natural Wonders Inc., a bankrupt chain of approximately 200 science and nature-themed stores, which Store of Knowledge pursued to achieve and expand its footprint. In early March 2001, the company resubmitted a $35 million bid, including accelerated payments on a $25 million secured portion, but creditors rejected the offer, depleting available cash reserves without delivering the anticipated synergies. This setback, combined with weak post-Christmas sales, triggered an acute . These challenges reflected broader difficulties in the specialty sector, where niche retailers struggled against dominant big-box competitors like Toys "R" Us and the nascent rise of online sales channels, limiting pricing power and market share. Similar pressures felled contemporaries such as Natural Wonders and player eToys, highlighting overreliance on physical retail in an evolving landscape. The culmination came in late March 2001, when Store of Knowledge Inc. and subsidiary SOK Operations Inc. filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Central District of . The filing prompted immediate closure of 21 underperforming stores and the company's website on April 1, 2001, alongside headquarters staff reductions, with liquidation planned for the remaining 70 locations. Partnerships with stations like Chicago's , which operated six affiliated outlets, were jeopardized, underscoring the ripple effects on collaborators dependent on store royalties.

Chapter 11 Filing and Liquidation

Store of Knowledge Inc. and its operating subsidiary, SOK Operations Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on March 28, 2001, in the U.S. Bankruptcy Court for the Central District of California in . The filing listed approximately 70 stores operating across the , primarily in malls and standalone locations focused on educational toys, books, and public broadcasting merchandise. At the time, the chain faced mounting operational challenges amid broader retail sector pressures, including competition from big-box retailers and online sellers, though specific debt figures were not publicly detailed in initial court documents. The Chapter 11 process, intended to facilitate restructuring while allowing continued operations, quickly transitioned toward as reorganization efforts faltered. The court approved the appointment of The Ozer Group and Hilco Merchant Resources as liquidation consultants to oversee going-out-of-business sales at the stores. These firms managed inventory disposition, pricing markdowns, and asset sales to maximize creditor recovery, with proceedings emphasizing rapid clearance of educational products, videos, and branded merchandise tied to public television partnerships. Industry observers noted that the chain's store count had peaked near 92 locations by late 2000, but declining sales and lease obligations accelerated the shift from restructuring to wind-down. Liquidation sales commenced shortly after the filing, with stores offering discounts on remaining stock to liquidate assets and fulfill creditor claims under priorities. By mid-2001, the majority of locations had closed, including key outlets in markets like and , where partnerships with local public stations such as WCET and had supported store viability. The process concluded with the distribution of proceeds to secured creditors, terminations, and dissolution of operations, marking the end of the chain's independent existence without emergence as a reorganized entity.

Legacy and Aftermath

Asset Acquisitions and Store Reutilization

Following the Chapter 11 filing on March 28, 2001, Store of Knowledge closed 21 underperforming locations on April 1 and commenced going-out-of-business sales at its remaining approximately 70 stores to liquidate inventory, fixtures, and leasehold improvements. The U.S. Bankruptcy Court for the Central District of appointed liquidation specialists, including Chicago-based Hilco Merchant Resources, to manage the process, ensuring accelerated disposition of merchandise valued at tens of millions of dollars. These sales, which offered discounts up to 70% on educational toys, books, and kits, concluded by mid-2001, with proceeds primarily allocated to secured creditors amid liabilities exceeding $100 million. No entity acquired the Store of Knowledge brand, , or operations as a ; attempts to restructure or sell the business failed due to insufficient interest from potential buyers in a competitive educational retail market strained by e-commerce growth and big-box competition. Physical store assets, including shelving and displays, were auctioned or scrapped during , while leases—often situated in malls and partnered with public television stations—were rejected under proceedings, reverting control to landlords. Post-liquidation, former Store of Knowledge sites were repurposed variably by property owners. In partnership-heavy markets like , the Kenwood Towne Centre location, co-operated with WCET-TV, shuttered without revival and was re-tenanted by apparel and dining outlets. Similarly, spaces in malls transitioned to complementary retailers, such as toy chains or bookstores, reflecting adaptive leasing strategies amid the early-2000s retail consolidation. This reutilization underscored the non-specialized nature of the footprints, which averaged 5,000 square feet and suited diverse specialty uses without requiring major renovations.

Impact on Educational Toy Retail Sector

The liquidation of Store of Knowledge following its Chapter 11 bankruptcy filing on March 28, 2001, exemplified the precarious position of specialty retailers in the early , as the chain operated around 70 stores focused on learning-oriented products like science kits, puzzles, and multimedia items. Many of its store leases and assets were acquired by Zany Brainy, another chain, enabling temporary expansion for the buyer but ultimately accelerating sector consolidation amid mutual financial strains—Zany Brainy itself filed for Chapter 11 just two months later in May 2001. This event, occurring alongside the 1999 closure of Learningsmith and the subsequent struggles of Zany Brainy (which shuttered all stores by ), underscored systemic challenges for niche operators, including high costs in malls, narrow product margins, and inability to match the pricing power of mass-market competitors like Toys "R" Us and . Larger chains countered by absorbing educational segments; for instance, Toys "R" Us acquired brand in 1999, integrating its 50+ outlets into broader toy inventories to leverage and capture rising parental demand for "edutainment" without standalone overhead. The fallout contributed to a broader retreat from independent specialty formats, with U.S. sales—estimated at $2.5–3 billion annually by 2002—shifting toward big-box integrations, early platforms, and models from manufacturers, as brick-and-mortar niches proved unsustainable against post-dot-com pressures and declining mall traffic. By the mid-2000s, surviving retail emphasized hybrid book-toy outlets or online channels, diminishing the viability of pure-play chains like Store of Knowledge and fostering long-term dominance by diversified retailers.

References

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