October 16, 2018

Wall Street Journal: Elizabeth Warren Takes Aim at Firms That Pulled the Plug on Toys ‘R’ Us

Senator urges investment firms to help finance a severance fund for some 30,000 laid-off workers

The decision by five investment companies to pull the plug on a Toys “R” Us reorganization earlier this year is coming under fire from Sen. Elizabeth Warren.
In an Oct. 16 letter to the companies, Ms. Warren (D., Mass.) asked why the investment firms had pressed to liquidate the retailer amid viable options to reorganize it and she urged them to contribute to a fund benefiting laid-off employees.

The letter went to executives at Solus Alternative Asset Management, Angelo Gordon & Co., Franklin Mutual Advisors, Highland Capital and Oaktree Capital, the five major holders of a crucial stake in Toys “R” Us debt. Ms. Warren also sent a letter requesting that Vornado Realty Trust , a former owner of Toys “R” Us, contribute to the former employee fund.

Read the full story on the Wall Street Journal website here.

By:  Gretchen Morgenson and Lillian Rizzo
Source: Wall Street Journal