- Several high-ranking Toys R Us executives, including CEO David Brandon, will be exiting the company on Monday.
- They will not be receiving the retention bonuses that had been approved by a bankruptcy court in September.
- “Several hundred” employees will continue working on winding down the retailer’s business and completing its liquidation sales, Toys R Us spokeswoman Amy von Walter told Business Insider.
- “It’s very unusual for the C Suite to leave before the business is entirely wound down,” bankruptcy lawyer Richard Weltman told the New York Post.
Toys R Us’ executives and most of its employees will leave their positions on Monday, the company confirmed on Friday.
That includes CEO David Brandon as well as members of the company’s leadership team.
Some members of the executive team as well as other employees were set to receive bonuses that had been approved by bankruptcy court in September. But Toys R Us spokeswoman Amy von Walter told Business Insider that the company “did not achieve the financial targets necessary to trigger a payout,” so those bonuses will not be paid. Brandon was set to receive $2.8 million personally.
“It’s very unusual for the C Suite to leave before the business is entirely wound down,” bankruptcy lawyer Richard Weltman told the New York Post.
“Several hundred” employees will be staying on to complete Toys R Us’ wind-down process, von Walter said.
Toys R Us employees working on the retailer’s going-out-of-business sales are not currently slated to receive severance. A total of 33,000 employees were affected by Toys R Us’ liquidation, and some are now demanding a piece of the pie in the form of some kind of compensation, according to CBS News.
Toys R Us filed a motion to liquidate its US business in March and began clearance sales at its remaining 735 stores shortly thereafter.