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Illustration: Sarah Grillo / Axios

The creditors that opted to liquidate Toys "R" Us, despite having takeover offers on the table, now say that they might try to revive the brand — including the possible opening of new retail locations. This comes after calling off an auction for the retailer's brand name and other IP assets.

The big picture: If you're a fired Toys "R" Us worker right now, this development must make you want to scream. Almost everyone, including company management and Toys' previous private equity sponsors, told the creditors that liquidation was the wrong move, both financially and morally. No clue why it took them so long to reach the same conclusion.

Bain Capital and KKR have reached a preliminary agreement to contribute a combined $20 million to a fund for fired Toys "R" Us workers. There are still lots of details to be worked out, including distribution protocols. It will still be months before workers see any cash.

  • Per Carrie Gleason, policy director for a group representing the workers: "The Toys R Us employee fund is a huge step forward and thousands of struggling families who counted these jobs will benefit. That's why Toys R Us workers are fighting for the $75 million they were counting before the liquidation. Now is the time for Vornado and creditors like Solus, Angelo Gordon and others to join and contribute."
  • She adds that some former Toys workers testified at a New Jersey state pension fund meeting last Thursday, urging divestment from Solus.

The bottom line: Other private equity firms might not like to hear it, but this is creating industry precedent. Not for bankrupt portfolio companies, but for ones that also get liquidated.

Go deeper

Collins helps contractor before pro-Susan PAC gets donation

Sen. Susan Collins during her reelection campaign. Photo: Scott Eisen/Getty Images

A PAC backing Sen. Susan Collins in her high-stakes reelection campaign received $150,000 from an entity linked to the wife of a defense contractor whose firm Collins helped land a federal contract, new public records show.

Why it matters: The executive, Martin Kao of Honolulu, leaned heavily on his political connections to boost his business, federal prosecutors say in an ongoing criminal case against him. The donation linked to Kao was veiled until last week.

How cutting GOP corporate cash could backfire

Illustration: Aïda Amer/Axios

Companies pulling back on political donations, particularly to members of Congress who voted against certifying President Biden's election win, could inadvertently push Republicans to embrace their party's rightward fringe.

Why it matters: Scores of corporate PACs have paused, scaled back or entirely abandoned their political giving programs. While designed to distance those companies from events that coincided with this month's deadly siege on the U.S. Capitol, research suggests the moves could actually empower the far-right.

9 hours ago - Politics & Policy

Scoop: Kaine, Collins pitch Senate colleagues on censuring Trump

Sen. Tim Kaine speaks with Sen. Susan Collins. Photo: Andrew Harnik/AP via Getty Images

Sens. Tim Kaine and Susan Collins are privately pitching their colleagues on a bipartisan resolution censuring former President Trump, three sources familiar with the discussions tell Axios.

Why it matters: Senators are looking for a way to condemn Trump on the record as it becomes increasingly unlikely Democrats will obtain the 17 Republican votes needed to gain a conviction in his second impeachment.

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