Former Workers Get A Severance Fund From Toys ‘R’ Us Owners

Former Toys ‘R’ Us workers finally received some good news.

The Wall Street Journal reports:

“The private-equity owners of Toys “R” Us Inc. are putting together a $20 million fund to make payments to thousands of former employees left jobless by the retailer’s liquidation, according to people familiar with the matter.

The fund’s creation by Bain Capital and KKR & Co. is an unusual move by private-equity owners of a bankrupt company. It isn’t required under bankruptcy law and has no ties to the bankruptcy process, the people said. The funding will be provided by the buyout firms’ general partners, they added.

The two private-equity firms have brought on a third party to help structure the fund and iron out the eligibility requirements, the people said. It is unknown what the median payout will be and the fund will be open to outside contributions, they added.

Bain, KKR and real-estate investment trust Vornado Realty Trust took Toys “R” Us private in 2005 in a $6.6 billion deal that included $5.3 billion in debt. When Toys “R” Us sought bankruptcy protection last year, much of its debt stemmed from the buyout.

Representatives of Bain and KKR declined to comment.

Although the retailer had hoped to survive bankruptcy, it said in March that it was shutting down, a move that resulted in the closure of more than 800 U.S. stores and the loss of 33,000 jobs.”

For the rest of the story, visit the Wall Street Journal here.

Subscribe to the Nations largest union directory and blog site!


By submitting this form, you are consenting to receive marketing emails from: Senders Communications Group, 21201 Victory Blvd. #235, Canoga Park, CA, 91303, http://www.sendersgroup.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Featured Posts:

Giving Thanks: Labor 411’s 2018 Eagles

The world of labor has absorbed its share of body blows in 2018. We’ve already run down our list of ...
Read More

Labor 411’s 2018 Turkeys of the Year

2018 saw its share of bad players. As the stock market skyrocketed, the rich got richer while the marginalized continued ...
Read More
The Westin

Leave a Reply