Customers in possession of Toys ‘R’ Us Canada gift cards face an urgent deadline for redemption following the retailer’s recent filing for creditor protection. The announcement came on Tuesday, highlighting the company’s ongoing struggle in the competitive retail landscape.
Bankruptcy Filing and Store Closures
As Toys ‘R’ Us grapples with financial difficulties, the retailer has been closing locations across the U.S. and Canada since 2018. The company’s ability to remain operational is uncertain, with reports indicating that only 22 stores are still in business across Canada. The recent legal filing under the Companies’ Creditors Arrangement Act (CCAA) was driven by challenges, including unpaid rent that resulted in lease terminations.
Gift Card Redemption Deadline
According to court documents, Toys ‘R’ Us has stopped the sale of new gift cards. The existing gift cards will be honored for 14 days from the filing date, marking February 16 as the last day for redemption. Customers are encouraged to visit physical stores, as the online shopping facility is currently unavailable.
Understanding Your Rights
The Government of Canada characterizes gift cards as prepaid cards with no expiration date. However, customers need to check specific terms attached to their gift cards, especially given the current situation at Toys ‘R’ Us.
What Happens Next?
- Gift Cards must be redeemed in-store before the February 16 deadline.
- The future of the remaining 22 stores is uncertain.
- Additional updates may be provided by Toys ‘R’ Us regarding the status of existing gift cards.
As of now, there has been no confirmation from Toys ‘R’ Us or the consulting firm overseeing its proceedings, Alvarez and Marsal Canada Inc., about the fate of unredeemed gift cards post-deadline. Customers with gift cards are strongly advised to act swiftly to utilize their balances.
For more updates on national news and developments regarding Toys ‘R’ Us, stay connected with El-Balad.
