Oct 3, 2018

Toys "R" Us may get a second life

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.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan's economy minister outlined plans on Monday to end the nationwide state of emergency as the number of new novel coronavirus cases continues to decline to less than 50 a day, per Bloomberg. Japan has reported 16,550 cases and 820 deaths.

By the numbers: Over 5.4 million people have tested positive for the virus as of Monday, and more than 2.1 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 13.7 million tests). The U.K. is reporting over 36,800 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of midnight ET: 5,401,701 — Total deaths: 345,060 — Total recoveries — 2,149,407Map.
  2. U.S.: Total confirmed cases as of midnight ET: 1,643,238 — Total deaths: 97,720 — Total recoveries: 366,736 — Total tested: 14,163,195Map.
  3. World: White House announces travel restrictions on Brazil, coronavirus hotspot in Southern Hemisphere Over 100 coronavirus cases in Germany tied to single day of church services — Boris Johnson backs top aide amid reports that he broke U.K. lockdown while exhibiting symptoms.
  4. Public health: Officials are urging Americans to wear masks headed into Memorial Day weekend Report finds "little evidence" coronavirus under control in most statesHurricanes, wildfires, the flu could strain COVID-19 response
  5. Economy: White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Public employees brace for layoffs.
  6. Federal government: Trump attacks a Columbia University study that suggests earlier lockdown could have saved 36,000 American lives.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

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Updated 1 hour ago - Politics & Policy

U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

President Trump doubled down on his push to reopen schools, tweeting late Sunday: "Schools in our country should be opened ASAP."

Zoom in: Trump pushed back on NIAD Director Anthony Fauci cautioning against the move earlier this month, calling his concerns "not an acceptable answer."