[Update 3/12/18: Seems likely now that Toys R Us will actually end up in Chapter 7 bankruptcy in which case – as I understand – even the website will shut down and all gift cards may become worthless, depending what the agreement is. Use up any Toys R Us and Babies R Us gift cards now.]
A surprising report from Wall Street Journal (paywall, read the text here) states that Toys R Us is weighing the option of completely closing all physical retail stores in the USA. Initial reports in January predicted some 182 locations closing down, as the big-box retailer reorganized it’s debit in bankruptcy proceedings. Yet now the idea of closing down all physical US locations is on the table.
Sounds like the online platform won’t be affected by the all this so Toys R Us gift cards should retain decent value. On the other hand, there are some physical-only Toys R Us deals, like buying Gift of College gift cards, which will come to an end should this eventually take place. And of course kids all over won’t be happy to hear the news.
Really amazing to see the mighty can fall as we shift to an internet-centric world. Just goes to show how little to take for granted. Maybe in our lifetime we’ll see other stores like Staples or Best Buy shift to web-only. Who knows what the future of retail holds.
Is there any issue with buying GOC gift cards from them while they’re still available?
No, they activate instantly.
Are you referring to this comment? https://www.doctorofcredit.com/arcadia-power-pay-your-electric-bill-with-credit-card-for-no-fee-available-nationwide/#comment-569127
News on this has changed some, several stories out now that Toys R Us could be filing Chapter 7 as soon as next week (maybe even Monday?!). Once they file all gift cards are worthless, so if you’re sitting on any I’d buy something ASAP.
As soon as the news broke last week, I unloaded my gift card.
how? in wat way?
Actually used mine to buy a toy for my kid. Imagine that, organic spending. Not everything has to be MS.
organic spending is boring
Sold it to a reseller for 75%. That’s a lot better than 0%.
The last TRU I ever stepped in was 4 years ago in Tokyo. Amazing place and it was a 2 minute walk from my hotel.
The downfall of Toys “R” Us can be traced back to a $7.5 billion leveraged buyout in 2005, when Bain Capital, KKR & Co. and Vornado Realty Trust loaded the company with debt.
This is exactly it. TRU has a debt problem, not an income problem.
Private equity! They are leaches, hate that most people commenting have no idea!
Good riddance in my book. Won’t shed a tear for them in my extended household. Have had family members do seasonal work for them in the past — the one here in Hoo’ville, VA in particular one of the most miserable, nasty sweat shops ever…. poor wages, treating employees like chattel — while managers flaunt their wealth, like Lords over lowly serfs. We’ve long boycotted Slaves ‘r us.
I’m personally pretty shocked that TRU is having such difficulty. Amazon and other online stores are great for many things, but at least 95% of the time I find toys are cheaper (sometimes considerably cheaper) at TRU than at Amazon. Ever since TRU started price matching amazon, I always check when buying, but I’ve only had to actually price match a few times. I’d suspect physical stores like Target and Walmart (whose prices ARE competitive with TRU) are the much bigger threat to them.
That said, I also wouldn’t put it past TRU’s online business being their own worst enemy. My experience with them has been pretty fantastic for me, but quite shocking. I can’t count the number of times they said something was in stock, but then it wasn’t, and so they gave me a $10 credit off anything. Then I turn around and order it a week later when it shows in stock, and then have the same thing happen.
One time I ordered 4 items. TRU said they all shipped together. I get a box big enough for the 4 items but only 1 item in the box (and no indication it had been re-opened after packaging). Call them up and they say “they should have all been there”. So they issue me a credit for the 3 missing items. A week later 1 of the items shows up on its own. I call them and they know nothing about it. Give them the tracking number and they are clueless. Free item for me, I guess.
Another time I ordered 1 item, and 2 came in the box. Then there’s the time I ordered for in store pickup, picked it up in store, and couple days later they refunded me for it.
The most shocking part is, for all of the above that has happened, I really don’t use TRU online to order all that often (though I guess if I were smart, I’d do so more often, given their track record).
I sure will be sad to see the stores close, though. And so will my kids.
Staples is next I guess.
This is bad news for GOC physical cards.
They really need to roll out to best buy already
I sent you a contact message for help.
They stopped the support of mobile app…