Toys ‘R’ Us Australia in voluntary administration: Rules on claiming gift cards

By @chelean on
Closing down signs are seen outside the Toys R Us store in Coventry, Britain, March 13, 2018.
Closing down signs are seen outside the Toys R Us store in Coventry, Britain, March 13, 2018. Reuters/Hannah McKay

Toys ‘R’ Us Australia has gone into voluntary administration. The move comes after the US stores have filed for bankruptcy protection in March.

The directors of the company appointed Jason Preston, Barry Kogan and Keith Crawford from the restructuring firm McGrath Nicol as its voluntary administrators after the withdrawal of its last bidder in the Australian sale process. All Toys R Us and subsidiary Babies R Us stores will remain open, which meant its around 700 jobs in 44 retail stores would be safe for now, until, if ever, the administrators found a better course of action.

Toys ‘R’ Us in the US filed for bankruptcy in September. It announced in March that it would liquidate its more than 700 stores nationwide. Last week, it was reported that it was selling its mascot and its adult-oriented domain names as well, such as sex-toys-r-us.com and -adult-toys-r-us.com. Its US and Irish stores have also closed down.

What to do with Toys ‘R’ Us gift cards

Customers who still have gift cards and store credits can still use them but only in stores and not online. And as a condition, the gift cards may only be accepted if the customers bought at least double the value of the gift cards. For example, they have a $100 gift card. In order for it to be accepted as payment, the customers must buy at least $200. The value of the gift card will be deducted from the transaction, and the customers will have to pay the remaining balance.

Online orders will also be delivered to customers if already paid in full. Lay-by transactions will be honoured if the outstanding balance is paid and the stock is still available. VIP discounts will be honoured as well, but the ability to earn and utilise points are suspended.

The customers were expectedly incensed by the conditions on the gift cards. As those have already been paid in full, the customers want to be able to use the full amount without being forced to pay for more.