Toys 'R' Us creditor sues former owners, ex-CEO [MarketWatch]
KKR & Co. Inc. (KKR)
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Source: MarketWatch
Toys 'R' Us creditor sues former owners, ex-CEO A bankruptcy trust for creditors who lost money in the Toys "R" Us Inc. bankruptcy sued former Chief Executive David Brandon and several directors tied to owners Bain Capital LP, KKR & Co. and Vornado Realty Trust, alleging they siphoned money out of the company before it went under. The lawsuit also accused Mr. Brandon and other Toys "R" Us executives and board members of conspiring to keep the company's suppliers in the dark about its dire financial straits in the months before it collapsed. As a result, suppliers and other creditors lost $800 million, according to the complaint. Toys "R" Us filed for bankruptcy in September 2017 and liquidated in March 2018, leaving behind a pile of unpaid bills, mostly to vendors. Bob Bodian, an attorney who represents the Toys "R" Us executives and directors, said they "acted in the best interest of the company and its stakeholders." The lawsuit is a "misguided effort to pressure insurance carriers
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