Toys R Us bankruptcy lawyers will receive $ 56 million in fees while employees will split $ 2 million
Toys & # 39; R & # 39; US bankruptcy lawyers receive $ 56 million in fees, while tens of thousands of redundant employees will split $ 2 million, leaving each of them with only $ 60 severance pay
- 33,000 Toys & # 39; R & # 39; US employees will receive a severance payment of $ 2 million
- A Virginia judge approved an arrangement for all employees who were made redundant
- The class action lawsuit was filed by a 30-year-old veteran of the company
- Each employee receives approximately $ 60, while the law firm must receive $ 56 million in fees
One year after the closure of the famous toy chain Toys & # 39; R & # 39; Us had to receive tens of thousands of redundant employees a portion of the redundancy money that had been promised but subsequently withdrawn.
Employees at the company will share $ 2 million among themselves. The sum is meager compared to $ 56 million in fees awarded to Kirkland & Ellis, the law firm that Toys & # 39; R & # 39; Us represents.
A bankruptcy judge approved the settlement on Thursday for a class-action lawsuit filed on behalf of 33,000 former Toys & # 39; R & # 39; US employees, each receiving around $ 60.
33,000 Toys & # 39; R & # 39; US employees will receive a severance payment of $ 2 million
Each employee receives approximately $ 60, while the law firm must receive $ 56 million in fees
& # 39; That will pay my phone bill & # 39 ;, said Michelle Perez, who worked as a supervisor in a Toys & # 39; R & # 39; Us store in Portland, Oregon, said against CBS News.
& # 39; This has really demonstrated how the bankruptcy system has been broken. It took us a year and we earn pennies from the dollar, & Perez added.
"Employees must be taken care of first, many employees have been there for 30 years," says Perez, a 29-year-old mother of two. & # 39; It shows how few employees are valued. Many of us still have no job. & # 39;
Judge Keith Philips of the Eastern District of Virginia awarded the $ 2 million to employees who were told that they would be given a departure at the start of the bankruptcy as part of an assistance package that was subsequently destroyed during the legal proceedings.
A Virginia judge approved a settlement for all employees who were fired as a result of a class action lawsuit filed by a 30-year-old veteran of the company
The payout is the result of a class-action lawsuit that was first closed in 2018, Ann Marie Reinhart, who for 29 years for Toys & # 39; R & # 39; Us worked.
& # 39; It's a shame they don't get anymore, but this scheme sends a message that employees deserve a place at the front of the creditor line when companies fail, and that's important for people who work in retail and their families, & # 39; lawyer Jack Raisner, who represented Reinhart, said in a statement.
& # 39; Nobody gets what they deserve, so that's a slap in the face & # 39 ;, Reinhart told CBS MoneyWatch.
Employees who stayed until the last days of the chain were told they were fired.
& # 39; I stayed until the end. Six weeks later, they announced that no one would get a divorce, & Reinhart said.
& # 39; I helped build that brand, all weekends and vacations, and we are rewarded with nothing & # 39 ;, she said.
Advocates had previously suggested that the redundant employees were entitled to $ 75 million in redundancy after the retailer closed 700 US stores last year.
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