Thousands of former Toys R Us workers will receive severance payments from a new $20 million fund, the Washington Post reported. The move is considered rare among private-equity-backed companies that file for bankruptcy. Even so, the amount pledged is well below the $75 million a workers rights group says those who lost their jobs are owed. Bain Capital and Kohlberg Kravis Roberts announced yesterday that each had committed $10 million to a fund for former Toys R Us workers. Bain and KKR are two of the three firms that bought Toys R Us in a 2005 leveraged buyout and loaded it up with billions of dollars in debt before liquidating the chain in June. One hundred percent of contributions to the fund will be paid directly to eligible employees. The fund is structured so that other “interested parties” can contribute. A third Toys R Us owner, Vornado Realty Trust, did not immediately respond to a request for comment on whether it would give to the fund.
