Fired Toys “R” Us Inc. workers took their travails to Congress yesterday to press for changes in the way private equity deals are structured, Bloomberg News reported. Potential U.S. presidential candidates Kirsten Gillibrand and Cory Booker, and Minority Leader Chuck Schumer were among Democratic senators who met yesterday with former staff members and workers’ rights groups. The ex-employees are asking for new leverage limits on private equity deals, along with a worker-protection tax and profit clawbacks that would fund payments in situations similar to the one now playing out with the demise of the private equity-owned U.S. toymaker. In a joint meeting with Sens. Booker and Bob Menendez, several workers, wearing blue and purple Toys ‘R’ Us or Babies ‘R’ Us shirts, asked the legislators to take action to prevent similar scenarios. Besides broader industry legislation, they asked that lawmakers urge creditors and the buyout firms to contribute to a hardship fund for the laid-off Toys workers. Menendez said that he and Senator Booker are considering specific policy proposals and may offer an amendment to the fiscal 2019 appropriations bill set for a vote in the coming days.
