Toys R Us Inc. received a bankruptcy court's approval Dec. 5 to proceed with its plan to pay up to $21 million in bonuses to its top executives, Reuters reported Dec. 6.

The American toy retailer, which filed for bankruptcy protection in September, told the U.S. Bankruptcy Court in Richmond, Va., that such a bonus will encourage its executives to boost the company's sales during the important holiday shopping season, the report said. The company reportedly makes about 40% of net sales in the fourth quarter.

According to the company's plans, about $21 million will be divided among 17 eligible executives if earnings before interest, depreciation and amortization for this fiscal year are $641 million, the report said. The plan also includes dividing about $14 million among these executives if the earnings are $550 million.