How high can you count?
It’s hard to know where to begin with the 10-Q that the now privately held Toys R Us (old ticker: TOY) filed earlier today because so many of the numbers — even after a quick skim — still shocks, particularly when you consider that Toys R Us’ investors only wound up with a so-so deal. Granted, Toys R Us is no stranger to big numbers, particularly when it comes to paying off its top executives as I blogged about here a few months ago. Still, seeing that the company spent $25 million in the quarter ended June 30 on “executive severance” for what appears to be payments to two executives — former Chairman John Eyler and former president Christopher Kay — is eye-popping. The company said it expects to pay out an additional $25 million to $30 million in executive severance going forward.
Then there’s the $81 million in fees paid to Bain Capital, Kohlberg Kravis and Vornado Realty Trust, which completed the $6.6 billion deal on July 21 and the $7.5 million in quarterly fees to be paid to the three sponsors going forward.
Finally, there’s the $2 million and a cache of options for interim CEO Richard Markee to stick around while the company is “evaluating its current management structure.”