The private-equity owners of Toys “R” Us Inc. are putting together a $20 million fund to make payments to thousands of former employees left jobless by the retailer’s liquidation, WSJ Pro Bankruptcy reported. The two private-equity firms have brought on a third party to help structure the fund and iron out the eligibility requirements. It is unknown what the median payout will be, and the fund will be open to outside contributions. Bain, KKR and real estate investment trust Vornado Realty Trust took Toys “R” Us private in 2005 in a $6.6 billion deal that included $5.3 billion in debt. When Toys “R” Us sought bankruptcy protection last year, much of its debt stemmed from the buyout. Although the retailer had hoped to survive bankruptcy, it said in March that it was shutting down, a move that resulted in the closure of more than 800 U.S. stores and the loss of 33,000 jobs.
