Toys ‘R’ Us agrees to pay $20M in severance to its laid-off workers

Posted at 8:13 PM, Nov 20, 2018
and last updated 2018-11-20 16:15:08-05

(CNN) - Thousands of Toys 'R' Us employees who lost their jobs when the company went out of business will be getting some severance pay.

Two private equity firms that owned a stake in Toys 'R' Us, Bain Capital and KKR, have set up a $20 million severance fund to pay the former workers.

Earlier this year, 31,000 employees did not get severance after Toys 'R' Us went out of business.

The closures came after the retailer filed for bankruptcy.

If the workers were laid off before bankruptcy, they would have been eligible for severance.

The fund was set up following talks between the private equity firms and groups representing the workers.

“KKR and Bain Capital's creation of this fund will bring real support to the thousands of dedicated Toys ‘R’ Us employees who lost their jobs,” said Tracey Forbes, a former Toys ‘R’ Us manager who lost her job after working for the company for 31 years. “We hope other firms will follow their lead and contribute.”

The groups are also calling on a third Toys 'R' Us owner, real estate firm Vornado, and two of the retailer’s lenders, Solus and Angelo Gordon, to contribute to the fund as well.

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