Not really a TFs news item, but both franchises are regularly mentioned here.
Toyworld have finalised their recent acquisition of the ToyKingdom franchise (most stores are in southern Australia like VIC).
Mentioned in the November issue of Toy & Hobby Retailer Magazine, most of the 72 Toy Kingdom stores will probably be renamed Toyworld, but it is up to the individual store owners - they can remain as Toy Kingdom if they want, but only until they sell their store/business.
Apparently the Toy Kingdom franchise (not necessarily the individual businesses) was in debt to a seven figure amount and close to collapse before Toyworld approached them in 2007.