*Doggone it! The changing times have put yet another institution out of business. 800 stores, 31,000 employee out of work…with no severance pay, equals disaster!
Any formula using this code will likely come to the same conclusion.
That famous jingle, “I want to be a Toys “R” Us kid,” is a part of childhood memories we won’t soon forget. And for those children fortunate enough to visit the store, they will no doubt begin to ask mommy and daddy why they can no longer go there.
The closing of this iconic institution absolutely marks the end of an era, and as if that isn’t sad enough, the shocking part of this news is not only will employees be out of a job, due to bankruptcy laws, they won’t even have severance pay to help soften the blow.
According to Fox Business News, analysts say the reason for this massive business downfall is the company “had huge debt and couldn’t keep up with trends.”
Many employees told CNN the shutdown caught them by surprise, even though the chain filed for bankruptcy back in September, and said in January that it would close nearly 200 locations.
Though Toys “R” Us employees won’t have severance pay to lean on, they will get benefits such as health insurance and matching 401(k) payments from the company.
Employees were promised 60 days pay — even if they don’t work the full two months. Some employees will not have that option, as they are expected to work throughout to ensure proper operations continue as the company winds down.
FAO Schwartz, a subsidiary of Toys “R” Us, closed its huge store on Fifth Avenue in NYC in July 2015. The business cited the reason being high rising rental costs.
Watch the Fox Business Network video report directly below.