Who Got Paid When Toys "R" Us Died

Toys "R" Us didn't run out of money overnight. From the 2005 buyout to the last court filing in 2024, the money went somewhere, and most of it is written down in SEC filings and bankruptcy court records. So I pulled the receipt. About $5.1 billion in interest. More than $470 million in fees and interest to the owners. $8.2 million in executive retention bonuses that took effect four days before the bankruptcy filing. $55.7 million for one law firm. And $60 for a full-time worker from the court's fund. Bankruptcy law puts the banks and the lawyers first in line. Is that system working as intended, or is it completely broken? Tell me in the comments. CHAPTERS 0:00 The receipt 0:30 What Toys R Us was 0:58 The $6.6 billion buyout 1:46 Where the money went 2:49 Did Bain, KKR and Vornado get rich? 3:39 The Amazon myth 4:12 Bonuses, then bankruptcy four days later 5:27 Why the lenders chose to liquidate 6:08 The $208 million bankruptcy bill 6:46 What the workers got 7:50 The brand came back 8:14 Your call SOURCES Toys "R" Us 10-K filings (SEC EDGAR): FY2004, FY2005, FY2011, FY2016, and Exhibit 12 interest schedules https://www.sec.gov/Archives/edgar/da... https://www.sec.gov/Archives/edgar/da... Retention bonus agreements (10-Q exhibit, Sept 2017): https://www.sec.gov/Archives/edgar/da... Amazon settlement (8-K, 2009): https://www.sec.gov/Archives/edgar/da... Bloomberg, owners' fees and losses: https://www.bloomberg.com/news/articl... PESP: https://pestakeholder.org/news/kkr-ba... Executive bonus plan (Reuters via HR Reporter): https://www.hrreporter.com/focus-area... Marketplace: https://www.marketplace.org/story/201... Creditor trust v. Brandon (E.D. Va.): https://www.courtlistener.com/opinion... Settlement: https://www.retaildive.com/news/toys-... Vendor settlement: https://www.supplychaindive.com/news/... Workers' court fund: https://www.retaildive.com/news/ex-to... CBS, workers' fund vs legal fees: https://cbsnews.com/news/bankruptcy-c... CBS, severance statement: https://www.cbsnews.com/news/toys-r-u... Severance policy (Money): https://money.com/suddenly-i-have-pur... Case docket (Kroll): https://cases.ra.kroll.com/toysrus/Ho... Last stores close (CBS): https://www.cbsnews.com/news/remainin... Comeback (Forbes): https://www.forbes.com/sites/joanverd...