Home / Business / Toys R Us is bankrupt, but senior executives are authorized to receive $ 16 million in bonds / Boing Boing

Toys R Us is bankrupt, but senior executives are authorized to receive $ 16 million in bonds / Boing Boing



A Justice Department attorney who represents the people who are owed money by Toys R Us does not believe that the bankrupt corporation should pay generous bonuses to the same executives who ran the toy store chain.

Judy Robbins: [19659003] "It defies logic and wisdom, not to mention the Bankruptcy Code, for a bankrupt company to propose more multimillion dollar bonuses for top managers of a company that started the year with layoffs employees and concludes in the middle of the bankruptcy holiday season Apparently, this Christmas, Toys "R" Us intends to deliver not only to "children their biggest smiles of the year" but also to those inside. "

However , the judge of the US Bankruptcy Court. UU Keith Phillips approved the payments.

From CW39:

Because Toys "R" Us filed for bankruptcy in September, it must now obtain judicial approval for many of its basic business decisions.

These new bonds will be in addition to another $ 8.2 million in retention bonuses paid to some of these same executives before Toys "R" Us declared bankruptcy. They would be required to return the withholding payments in case they leave the company within one year of receiving them.

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mark frauenfelder

Mark Frauenfelder is the founder of Boing Boing and the founding editor of MAKE. He is director of research at Institute for the Future and editor in chief of Cool Tools and co-founder of Wink Books. Twitter: @frauenfelder .

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