June 16, 2018

Toys R US shortchanges its employees

Boing Boing - [Toys R us] private equity owners borrowed more than $5 billion to buy the company (with a $400 million annual debt service plan). The new owners quickly took the company into bankruptcy, defaulting on that giant debt, after paying themselves $200 million (including tens of millions in performance bonuses to the C-suite in the same year the company declared bankruptcy).

Now the company has announced that it will also default on all severance payouts to the company's 30,000 employees, including employees who worked at the company for decades, skipping Christmas and Thanksgiving with their families to staff the stores, now slated to get literally not one penny.

2 comments:

Anonymous said...

They should certainly get a 30-year prison term for that!

But they won't.

Unknown said...

Ah....The smell of Capitalism in the morning!