Toys "R" Us workers ask Congress for new private equity rules
Illustration: Sarah Grillo / Axios
A group of former Toys "R" Us workers were on Capitol Hill yesterday, asking for private equity-related legislation that could include new worker protections, leverage limits and profit clawbacks.
Result (so far): Senator Bob Menendez (D-NJ) said he and Sen. Cory Booker (D-NJ) may offer a legislative fix, although he also said it would be via an appropriations bill that actually passed on Wednesday.
- The workers also met with Sens. Kirsten Gillibrand (D-NY) and reps for Sen. Elizabeth Warren (D-MA). Seems like they're missing an entire side of the aisle and, at this point, that's the only side that really matters.
- I'm told that former Toys "R" Us owners KKR and Bain Capital continue to speak with the ex-worker reps about structuring some sort of hardship fund. But I also heard that a month ago, and nothing is done yet.
- At the same time, a source points out that some of the employees fared slightly better than they otherwise might have, because the PE firms and creditors set aside enough cash in the bankruptcy administration claim to ensure all employees received WARN notices (meaning that the co had to let them work at least 60 more days with full pay).