Toys ‘R’ Us Creditors’ Lawsuit Accuses Directors, Private-Equity Owners of Fraud
Toys “R” Us Inc. creditors filed a lawsuit accusing the defunct retailer’s professionals and private-equity owners of fraudulence and breach of fiduciary trust.
Previous ceo David Brandon along with other directors misrepresented the model seller’s ability to settle creditors after it filed for bankruptcy in 2017 while gathering millions in bonuses and advising costs, in accordance with the grievance filed in ny Supreme Court. The situation is being brought with a trust designed for creditors, including toymakers.
Toys “R” Us liquidated in 2018, making those vendors and employees scrambling for funds too restricted to fulfill all claims. That’s prompted several years of recrimination against onetime owners KKR & Co., Bain Capital, and Vornado Realty Trust, whom purchased the ongoing business in 2005 in a deal that critics said left the store not able to commit to keep competitive. (more…)