Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Donkees

(32,400 posts)
Thu Jul 5, 2018, 05:00 PM Jul 2018

Bernie Sanders asks if private equity owners 'deliberately' killed Toys 'R' Us

by Joseph Lawler
July 05, 2018 04:22 PM

Excerpt:

Sen. Bernie Sanders and other liberal lawmakers asked the private equity owners of Toys “R” Us Thursday whether they intentionally forced the toy company toward bankruptcy and mass layoffs.

“We are concerned that your investment firms have deliberately chose this path for the company, its works and its communities,” the Congressional Progressive Caucus wrote in a letter to executives at Bain Capital, KKR, and Vornado Realty Trust, the firms that bought Toys “R” Us in 2005.

Sanders, I-Vt., and the other members of Congress faulted the leveraged buyout model employed by the investment firms for causing the toy company’s failure, and asked the executives whether it was a deliberate policy to “load the company with debt.” They also asked if they planned to offer severance pay to any workers.

The bankruptcy caused Toys “R” Us to close the doors of its U.S. stores last week, as creditors decided to sell off its remaining assets rather than continue its operations. The company had nearly $5 billion in debt.

https://www.washingtonexaminer.com/policy/economy/bernie-sanders-asks-if-private-equity-owners-deliberately-killed-toys-r-us

Latest Discussions»Retired Forums»Bernie Sanders»Bernie Sanders asks if pr...