Former Toys ‘R’ Us Executives Face Trial Over Botched Bankruptcy
- Will face allegations they misled creditors as firm collapsed
- Toy retailer ultimately liquidated after filing for bankruptcy
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Former Toys “R” executives Us are set to stand trial over allegations they misled suppliers about the retailer’s dire financial condition while the company tried to stay afloat in bankruptcy and then stiffed them on more than $600 million of bills.
U.S. Bankruptcy Judge Keith Phillips on Monday said a trial should go forward, rebuffing a request from the former executives to throw out the creditor claims entirely. The former directors and officers have denied wrongdoing.