Use Toys ‘R’ Us Canada Gift Cards Before They Expire Amid Bankruptcy
Customers with Toys ‘R’ Us Canada gift cards are facing a critical deadline. The retailer filed for creditor protection in Ontario, raising concerns about the future of existing gift cards.
Toys ‘R’ Us Canada Bankruptcy Update
Toys ‘R’ Us Canada has struggled since 2018, closing numerous stores and eliminating staff due to intense competition and changing consumer habits. Currently, only 22 locations remain operational in Canada, and their future is uncertain.
Important Deadline for Gift Card Holders
Gift card holders must act quickly. The company has announced that it plans to honor previously issued gift cards for only 14 days following its filing. This means all gift cards need to be redeemed by February 16, as indicated in court documents.
- Toys ‘R’ Us filed for creditor protection on February 2.
- Gift cards can be redeemed in-store only; online services are currently unavailable.
- No new gift cards are being issued as of now.
According to court filings, the company has discontinued the sale of new gift cards. The ongoing financial issues stem from significant debts owed to landlords, including rent arrears that led to lease terminations by RioCan Holdings Inc.
Gift Card Regulations in Canada
The government of Canada classifies gift cards as prepaid cards that typically do not expire. However, specific terms may vary. Consumers are encouraged to review the terms associated with their gift cards to avoid expiring balances.
Currently, the Toys ‘R’ Us online store is down, with a message stating that customers should visit in-store. The court filings suggest that the future of the remaining Toys ‘R’ Us locations is precarious without the protections afforded by the Companies’ Creditors Arrangement Act (CCAA).
Next Steps for Consumers
Customers with outstanding gift cards are urged to redeem them in the next few days. Whether these cards will be honored after February 16 remains unclear. Global News has inquired with Toys ‘R’ Us and their consulting firm, Alvarez and Marsal Canada Inc., regarding possible solutions for unredeemed gift cards.
As the situation develops, customers are advised to stay informed and check for updates regularly regarding the status of their gift cards and store operations.
