The world said goodbye to Toys “R” Us earlier this year as the company closed its remaining stores in the U.S. The closures resulted in more than 33,000 layoffs and numerous building vacancies.
Toys “R” Us owners Bain Capital and KKR are planning to create a $20 million severance fund to assist the toy company’s former employees. Toys “R” Us employees are owed a total of $75 million in combined severance payments.
Toys “R” Us fell victim to the rise of e-commerce and increased popularity in online shopping. The company was not able to keep up with Amazon and Walmart, which began dominating the online retail space. Toys “R” Us filed for bankruptcy in 2015.
In July, 19 members of Congress sent a letter to KKR inquiring about the role it played in Toy “R” Us’ bankruptcy. In a response letter KKR said it wanted to help laid-off workers.
The store’s former employees in New Jersey, North Carolina, Oregon, Texas, Virginia, Arizona and Minnesota have started lobbying for partners of Toys “R” Us to assist Bain Capital and KKR in funding the severance payments.