OAFE – Blog

First, The Washington Post reported that two of the three owners of TRU have set aside money to give the ex-workers severance pay:

Bain Capital and Kohlberg Kravis Roberts - two of the three firms that bought Toys R Us in a 2005 leveraged buyout and loaded it with billions of dollars in debt before liquidating the chain in June - are setting aside millions of dollars in a fund to be distributed to retail workers, according to a person involved in the negotiations who spoke on the condition of anonymity. A third owner, Vornado Realty Trust, is not contributing to the fund, that person said.

(Note: You can learn more about leveraged buyouts and the three hedge funds that screwed Toys Я Us here.)

Now, why do you think Bain and KKR would suddenly want to do damage control on this situation, right before the holiday season hits and shoppers everywhere start going gift shopping and getting a reminder of what happened when they see all those empty Toys Я Us buildings?

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