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Toys R Us is bankrupt, but top execs are cleared to receive $16 million in bonuses
A Justice department attorney representing the people owed money by Toys R Us doesn't believe the bankrupt corporation should pay lavish bonuses to the same executives who drove the toy store chain into the ground.
From Judy Robbins filing:
It defies logic and wisdom, not to mention the Bankruptcy Code, that a bankrupt company would now propose further multi-million dollar bonuses for the senior leadership of a company that began the year with employee layoffs and concludes it in the midst of the holiday season in bankruptcy. Apparently, this Christmas, Toys R Us intends to deliver not only children their biggest smiles of the year but the insiders, too.
Nevertheless U.S. Bankruptcy Court Judge Keith Phillips approved the payouts.
From CW39:
Because Toys R Us filed for bankruptcy in September, it must now must get court approval for many of its basic business decisions.
These new bonuses will be in addition to another $8.2 million in retention bonuses paid to some of these same executives before Toys R Us filed for bankruptcy. They would be required to return the retention payments should they quit the company within a year of receiving them.
Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/HSPrtaUiVd8/toys-r-us-is-bankrupt-but-top.html