How Does the Toys 'R' Us Bankruptcy Affect Shoppers?

What About Those Gift Cards from Geoffrey the Giraffe?

September 19, 2017

© Christian De Grandmaison | Dreamstime

The nation’s largest toy retailer, Toys ‘R’ Us, filed for Chapter 11 bankruptcy protection in a federal court yesterday. The company, which like many brick and mortar stores, has fallen victim to online shopping. The company is said to be looking to restructure about $5 billion in debt.

So how does this affect shoppers? The short answer: it won’t affect shoppers right away.

The company plans to keep all existing stores open at this point, and yes, that means they are expected to stay open through the upcoming holiday season.

This also means that any expecting parents who are registered at Babies ‘R’ Us do not have to worry. All registries at the company’s stores will remain operational. Credit cards and reward points won't be affected either at this point.

There was also a rumor going around the web that you would need to spend money on any Toys ‘R’ Us gift cards right away. At this point, that is not true. If you have a gift card, the value will remain on that card for the foreseeable future. The company would have to make any announcements about changes to that policy well in advance.

So, at this point, not much will be changing right away. In fact, not much will change right away for the company's 64,000 employees either. Those who work for the company will keep their jobs and benefits for the foreseeable future.

Meanwhile, Toys 'R' Us will work to restructure their debt.