Toys R Us executives and a large quantity of its employees will leave their positions this week ahead of the final stores’ actual closures.
The move has been labelled as ‘very unusual’ as it would be expected for executives to hold their positions until the business had been completely wound down.
CEO David Brandon, as well as members of the company’s leadership team, will each be leaving their posts ahead of the completed wind down.
Some members of the executive team as well as other employees were set to receive bonuses that had been approved by bankruptcy court in September. However, a Toys R Us spokeswoman has detailed that the company ‘did not achieve the financial targets necessary to trigger a payout.’
The bonuses will therefore not be paid. Brandon was set to receive $2.8m.
“It’s very unusual for the C Suite to leave before the business is entirely wound down,” bankruptcy lawyer Richard Weltman told the New York Post.
Several hundred employees will remain to see the wind-down process to the end.
Toys R Us employees working on the retailer’s going out of business sales are not currently slated to receive severance, according to Business Insider. A total of 33,000 employees were affected by Toys R Us’ liquidation.