33,000 former Toys ‘R’ Us employees have won $2m dollars in a severance case in the US courts, a small win for those workers laid off after the toy retail giant filed for bankruptcy last year.
The group was led by Ann Marie Reinhart Smith, a 30-year Toys R Us employee who filed the claim on behalf of all employees laid off without severance. “After being so loyal to the company, to be let go without our promised severance is disrespectful,” she said in a statement. “We’re grateful we achieved this class-action settlement. It’s an important milestone for working families like mine who are so vulnerable to Wall Street’s greed.”
Anne Marie has called the settlement bittersweet. She said that, despite recognising the importance of honouring severance, the case highlights what she described as holes in the bankruptcy process that prevents employees from being paid in full.