Bankrupt Toys R Us to pay execs $16M in bonuses

A Toys R Us manager in Texas hands out tickets on Thanksgiving, Nov. 23, 2017. On Dec. 6, 2017, a U.S. Bankruptcy Court judge approved the company paying $16 million in bonuses to senior executives with the tacit approval of lenders, overriding objections from the U.S. Department of Justice. less A Toys R Us manager in Texas hands out tickets on Thanksgiving, Nov. 23, 2017. On Dec. 6, 2017, a U.S. Bankruptcy Court judge approved the company paying $16 million in bonuses to senior executives with the ... more Photo: Guy Wathen / The Chronicle Photo: Guy Wathen / The Chronicle Image 1 of / 1 Caption Close Bankrupt Toys R Us to pay execs $16M in bonuses 1 / 1 Back to Gallery

A judge bestowed an early holiday gift for executives of Toys R Us, allowing the bankrupt retailer to pay out $16 million in bonuses to senior executives this year even as it wipes off billions of dollars of debt owed lenders.

Toys R Us had consulted with its creditors in advance of the request, with bonuses kicking in if the Wayne, N.J.-based company hits profitability targets for the fourth quarter of its fiscal year encompassing the 2017 holiday season.

The U.S. Department of Justice had opposed the request in a filing with the U.S. Bankruptcy Court for the Eastern District of Virginia, arguing it “defies logic and wisdom” and noting layoffs Toys R Us had executed earlier in the year.

Alex.Soule@scni.com; 203-842-2545; @casoulman