Toys 'R' Us bankruptcy: What about my gift cards?

Tammy Harvey
September 21, 2017

The retailer said Monday night that, "to achieve its financial objectives, Toys'R'Us and some of our Us subsidiaries and our Canadian subsidiary proactively and voluntarily filed for Chapter 11 of the Bankruptcy Code in the U.S".

Toys'R'Us, which has around 1,600 stores worldwide and almost 65,000 employees, said most of its shops remained profitable and would operate "as usual" while it looks to restructure a 5.6billion U.S. dollar (£3.6bn) debt mountain.

From 2018 to 2021, the company plans to invest $277 million to convert existing locations into side-by-side storefronts for toys and the company's Babies R Us brand.

The company said its Canadian unit intends to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.

"Increasing reliance on holiday sales, with profitability tied to successful inventory management, shifting of shopping patterns closer to holiday season and pricing pressures of more diversified discount retailers have made it particularly challenging for traditional specialised retail outlets to do well over time", said the UBS note.

Times are changing but we still hope to encourage our younger generation especially to continue finding joy in a simple toy! Either way, for '90s gamers, the company's Chapter 11 announcement is concerning news.

While toy sales overall have held up fairly well, they are shifting toward discounters and online companies.

So is this the end of Toys "R" Us?

Did you know that it has just filed for bankruptcy protection?

Toys R Us operates 1,695 stores, including its Babies R Us stores.

"We're expanding the fleet to where customers want to buy", said Brandon, who joined the company in July 2015 after a career that includes turning around Domino's Pizza.

The bankruptcy news comes less than a month after the company decided not to take pre-orders on the SNES Mini, which previously sold out within minutes across retailers from Amazon to Target. Toys "R" Us already offers some activities, such as birthday parties, at its stores.

Yes. Your "R" Us Credit Card will continue to be accepted.

Toys R Us, burdened by loan payments from its leveraged buyout in 2005, was not able to make such investments, which ultimately led to its position behind its rivals today. Toys R Us suppliers started stepping back a little too late - reminding suppliers everywhere that paying attention to your buyer's financial health is as important as managing your own. US toy sales rose 6 per cent last year on top of a seven per cent increase in the prior year, says NPD Group Inc., a market research firm. That company is responsible for selling Transformers and Nerf and has outdone Mattel so far this year. Not only did we get toys, bikes and board games from them, but also video games.

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