Toys R Us is in the process of closing all 800 of its U.S. stores. Now, some workers are calling on lawmakers to create new rules that would require bankrupt companies backed by private-equity firms to provide compensation to their workers. On Friday, more than a dozen workers met with lawmakers in New Jersey, where Toys R Us is based, to push for severance pay. How can they walk away with millions and leave 33,000 workers with zero?”[Analysts: Toys R Us might have survived if it did not have to deal with so much debt]Last year, Toys R Us awarded executives $8 million in bonuses a week before filing for bankruptcy. Others that have filed for bankruptcy following leveraged buyouts include Nine West, Claire’s, Gymboree, True Religion and Payless Shoe Source.

Source: Washington Post June 01, 2018 20:14 UTC