Severance Fund Created for Former Toys R Us Workers

The private equity firms KKR and Bain Capital, which owned Toys R Us before the company declared bankruptcy, have each pledged $10 million to establish the TRU Financial Assistance Fund, CNBC reports. The firms said the fund is being established to try to provide some financial relief for former employees. The article notes that this is an unusual move by the firms since this is not a requirement under bankruptcy law. Former employees must meet certain requirements in order to be eligible for payments, including being employed by Toys R Us for at least a year, having an annual income between $5,000 and $110,000 and meeting the termination and employment guidelines in the Toys R Us plan. Interested parties will be able to comment on the terms and conditions of the plan during a two-week period. Following the evaluation of comments, the final terms and conditions will be outlined. The claims process is expected to begin on Dec. 15 with the goal of completing payments by April 30, 2019.

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