Former Toy ‘R’ Us thousands of employees to get $20 million as compensation

Followers of Toy 'R' Us have a good news! Thousands of former employees of this renowned New Jersey's Wayne-based international toy, clothing, video game and baby products retailer will get severance payments for a new $20 million fund.

The sources claim that Toy 'R' Us' two private equity owners have created a $20 million hardship fund for the thousands of former staffs who went jobless without any compensation after the chain was liquidated in June. According to ABC13, Kohlberg Kravis Roberts and Bain Capital recently declared the creation of such a fund of mammoth amount (each promised to fund $10 million) which is targeted to assist the 30,000 workers affected by the store closures.

Both Kohlberg Kravis Roberts and Bain Capital brought Toy 'R' Us in a leverage buyout in 2005 and loaded it up with billions of dollars in debt before liquidating the chain in June. Now it is being decided that 100% of contributions to the fund will be paid directly to the eligible staffs.

However, this is very early to say how the funds will be distributed as the sources say that the strategies will be framed out around company data including earnings and the number of hours worked, in which the inputs of the former staffs will also be included.