Toys ‘R’ Us Workers Take on Private Equity Vultures

Negin Owliaei Researcher, Institute for Policy Studies

It was once the biggest toy company in the world. But Toys ‘R’ Us  turned off the lights in its remaining stores for the last time on Friday, becoming the most recent casualty of Wall Street greed.

As Toys ‘R’ Us first began its descent into bankruptcy and liquidation, it was seen as another point on the “retail apocalypse” continuum, with many in the media blaming e-commerce and changing shopping habits for store bankruptcies around the country. But the narrative is shifting to place the blame on the private equity firms that purchased the company with a leveraged buyout in 2005, only to saddle it with billions of dollars in debt.

That shift is due in no small part to the biggest victims of the buyout — the more than 30,000 Toys ‘R’ Us employees now out of a job. Those workers aren’t letting the store close without a fight for fair severance, and consequences for the Wall Street firms that turned a profit while leaving them in financial insecurity.

Tens of thousands of people signed petitions calling on Toys ‘R’ Us owners to pay workers out of the sizeable private equity profits. Workers gathered in Bain Capital’s New York City lobby, creating a mock graveyard to mourn the toy store “killed by Wall Street greed.” They protested at the private equity firms that owned the company, outside the home of former CEO David Brandon, and within their local stores.

Posted In: Allied Approaches

Union Matters

Raise the Wage!

From the AFL-CIO

It’s been a decade since the federal minimum wage was increased—the longest period in American history without an increase. In that time, the cost of living has increased and working families have struggled to make ends meet. The Raise the Wage Act would finally bring the federal minimum wage up to $15 an hour.

The House of Representatives is voting tomorrow on the Raise the Wage Act, and we need to make sure lawmakers know where workers stand. Will you show your support and ask your friends to call their representatives?

One in 9 workers in the U.S. is in poverty—even when working full time and year-round. Passing the Raise the Wage Act as it stands would empower working families in need and build an economy that works for everyone.

Share our #RaisetheWage message on social media right now.

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