Those laid off because of Toys “R” Us’ closure are now getting a portion of their owed severance, but it isn’t Toys “R” Us that’s paying for it.
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Instead, two of the former owners of the company, KKR and Bain Capital, have organized a financial assistance fund for employees of the toy store chain. The fund consists of $20 million, and while that won’t be enough to cover the full severance owed (that would be around $75 million), it is a step in the right direction from 0, which is what employees were originally receiving from Toys “R” Us (via Twitter).
The official language states “The TRU Financial Assistance Fund (“the Fund”) has been established to provide monetary relief to former Toys “R” Us U.S. employees who lost their jobs as a result of the severe disruption in the retail industry and the unexpected liquidation of the U.S. business of Toys “R” Us. The establishment of the Fund was announced on November 20, 2018.
The TRU Financial Assistance Fund is being administered by Kenneth Feinberg and Camille Biros who are serving as independent Administrators and are responsible for the management and distribution of the Fund. They are focused on putting in place a transparent, fair process for Eligible Former Toys “R” Us Employees (“Eligible Former Employees”) who have been impacted by the unfortunate liquidation of the U.S. business.”
Feinberg is coming up with a formula on how to distribute the money. Two of the main points of his formula dictate that you will have needed to be with the company at least a year to receive funds and made between $5,000 and $100,000 annually to qualify.
“In order to maximize the impact of available funds, key eligibility requirements and payment parameters had to be instituted,” Feinberg said.
The full qualifications can be found below.
“To qualify for payment under this draft protocol, individuals must:
1. Have been employed by the Company for a minimum of one year on or after September 18, 2017.
2. Have been terminated after September 18, 2017 because of the corporate shut-down/downsizing process.
3. Have annual income above $5,000 but below $110,000.
4. Seasonal Employees are not eligible for payment.
5. Individuals who received severance or termination pay are not eligible for payment.
The minimum payment will be $200. “
You can learn more about the assistance fund here, and for a full chart of compensation, you can head here.
