Success: Toys R Us Owners Raise Money for Laid-Off Employees

Target: Joshua Bekenstein, co-chairman of Bain Capital

Goal: Applaud efforts to make sure laid-off Toys R Us employees get the payments they’re owed.

In the wake of the Toys R Us company’s bankruptcy claim thousands of employees were laid off and lost their promised severance. Now the capital investments companies that owned Toys R Us are raising millions of dollars in funds to be distributed to the laid-off retail employees. Labor groups, concerned citizens, and online petitions like this one on ForceChange demanded justice for Toys R Us’ nearly 33,000 ex-employees who lost everything when the company went under.

According to the Wall Street Journal, Bain Capital and Kohlberg Kravis Roberts have already set aside approximately 20 million dollars for the severance replacement “hardship” fund. Although this does not cover all of the 75 million dollars in lost severance and promised benefits it does constitute a good start towards correcting this injustice for the former Toys R Us employees and their families. Reports show that the private equity firm Vornado Realty trust, another part owner, has not yet agreed to contribute to the fund. Hopefully with pressure from companies like Bain Capital, all of the firms responsible for Toys R Us closing will pay their fair share.

PETITION LETTER:

Dear Joshua Bekenstein,

Thank you for holding your company responsible for remedying the economic hardship resulting from the close of the Toys R Us company by setting aside 20 million dollars for the former employees’ hardship fund. There are still nearly 33,000 former employees waiting for their fair share of the 75 million dollars in severance and pensions denied them by the bankruptcy claim, but thanks to you they are nearly a third of the way to what they deserve.

Hopefully with pressure from your well known company other Toys R Us partial owners like Vornado Realty trust will agree to step up and contribute to the laid off employees’ financial security. As long as companies like Bain Capital publicly support employee restitution and denounce attempts to cut them off from the benefits they deserve there is hope that things like this will not happen again. Thank you for your ongoing support.

Sincerely,

[Your Name Here]

Photo Credit: Terence Ong