B8ta, the company responsible for bringing Toys R Us back from the grave, has furloughed its entire workforce.
Last week B8ta’s chief executive Vibhu Norby penned a letter to employees stating that all store staff would be furloughed, and any corporate staff not laid off would receive mandatory pay cuts.
Furloughed employees will reportedly by paid up until March 28 and will receive $1000 relief checks, while temporary staff will receive $500.
Norby suggested that when stores reopen the furloughed staff will be welcomed back, but gave no details.
B8ta runs around 25 of its own flagship retail stores, but also powers retail operations for brands including the recently resurrected Toys R Us.
With Toys R Us, its model sees “the hottest toy products and brands” pay a subscription to Toys R Us to include their products in “immersive”, “highly interactive” experiences instore, but takes 100 per cent of the revenue.
Ready to play? We're SO excited to announce our partnership with b8ta to bring back Toys"R"Us! A reimagined, playful, just-gotta-see-it experience is on the way. Visit https://t.co/uGZMjODwAV to learn more about our bold step, skip and hop towards a #newwaytoplay! pic.twitter.com/w7sn2inOIU
— ToysRUs (@ToysRUs) July 18, 2019
“We launched b8ta to change the fundamental infrastructure of retail, from the business model to the customer experience,” Norby said in July ahead of Toys R Us’ relaunch.
“B8ta is proud to bring Toys R Us stores back to the US alongside our partner, Tru Kids, and with our Retail as a Service platform as its engine, the new Toys R Us stores will be the most progressive and advanced stores in its category in the world, and we hope to surprise and delight kids for generations to come.”