Toys R Us

Private equity firms create $20 million fund for Toys "R" Us workers

Illustration: Sarah Grillo / Axios

Private equity firms Bain Capital and KKR this morning announced the creation of a $20 million fund to compensate thousands of Toys "R" Us employees who lost their jobs when the retailer shut down earlier this year.

Why it matters: The Toys "R" Us situation was unusual in terms of both scale and the decision to liquidate rather than scale back or sell, but there could be some who view this new fund as precedent-setting.

Carving up the Toys "R" Us bonanza

Photo: Tom Pennington/Getty

Investors are talking about reviving the bankrupt Toys "R" Us, but its multibillion-dollar business is meanwhile being picked over by the big three — Amazon, Walmart and Target.

What's going on: Target and Walmart are adding floor space to accommodate more toys this holiday season, reports WSJ. And they are in a pitched toys battle with Amazon online, according to a new report from Gartner L2.

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