Analysis: At Toys ‘R’ Us, a $200 Million Debt Problem Could Lead to $348 Million in Fees
Last spring, Toys “R” Us, struggling in the face of competition, wanted to refinance about $200 million in debt. A year and a bankruptcy filing later, Toys “R” Us is expected to pay as much as $348 million for the dozens of bankers, lawyers and consultants that tried to fix its problems, the New York Times reported. Toys “R” Us’ swift downfall has been particularly painful for the company’s more than 30,000 employees, who are losing their jobs as the company shuts its doors across the United States in the next few weeks. The store workers say that they will not receive severance, even though many say they were originally promised modest payouts. In the final days, Toys “R” Us is paying many employees for full-time work, but not requiring them to come into the office if they aren’t needed.
