Toys R Us Employees Demand Severance Pay for Their Work Rendered!
A few months ago, millions of toy collectors and lovers all over the world were shocked when Toys R Us announced that they’re finally shutting down their operations after more than 65 years. Most fans are at a loss on where to shop their favorite toy apparels and products once the store is gone.
While some fans also reminisced about their great childhood days with this awesome company. However, it seems that there’s no stopping Toys R Us from shutting down now since the employees are expected to leave their positions this coming Monday.
Toys R Us Filed Bankruptcy
After almost 30 years of business operations as the leading provider of toys, apparel, and juvenile products, Toys R Us sales trailed behind Walmart last July 2005. It was the first time that the company’s sales plummeted as other eCommerce retail giants such as Amazon, Walmart, and Target started to emerge. The company attempted to offer an IPO to their stockholders and changed their BOD to recover their sales by 63%. However, the $26.74 billion they accumulated from IPOs wasn’t enough to pay all their debts. The company continued to file in the SEC to recover their profit since then.
Last year, Toys R Us was able to borrow another $2 billion from the SEC which was used to rebuild their flagship store in New York. The purpose of the reopening was to boost their target sale in the Holiday Season which could help pay off their debts.
However, they failed to meet their target sale and lost an astounding $164 million in the 4th quarter of 2017. Since the company cannot pay its massive debt anymore, the management decided to shut down its operations. The UK branches first announced its closure last December 2017, while the US operations followed the announcement last January 2018. All of its 800 US stores are set to close in the next six weeks.
Petition for Severance Pay
Now that Toys R Us executive is expected to leave their positions by Monday, one store manager named Tracy Forbes expressed her disappointment that she, along with other 33,000 workers, are not only on the verge of losing their jobs but will not be receiving any severance pay too, while the company’s C-level employees are walking away with millions. This prompted her to file a petition to demand that the said company to severance pay to its 33,000 workers.
She stated that the private-equity owners like Bain Capital and Vornado Realty Trust should not collect over $470 million interest payments and fees now that the company had gone bankrupt. Furthermore, she believes that companies such as Bain Capital must not be allowed to buy other companies through taking huge loans since that lead to Toys R Us’ ultimate downfall. Not only the company suffered from huge debt, but its employees were mostly affected by the discharge of employment.
Meeting with Lawmakers
Along with other labor advocacy groups such as Organization United for Respect and Center for Popular Democracy, Forbes met with lawmakers last Tuesday in Washington D.C. to seek for their help before the layoff happens this coming Monday. She wants to make sure that not only her team members will be taken care off, but also the other Toys R Us workers all over the country.
She spoke with Congress to help them get their severance pay and to implement laws for laid-off workers. The management needs to realize that these hardworking personnel are supporting their families, so any retail company should compensate their employees whenever its due.
Moreover, Forbes said she would continue to work in her store until it closes for good by late June. She hopes that Toys R Us will eventually relent to their pleas and give them severance pay by then.
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