Struggling retailer says gift cards will expire soon at stores in Ontario and across Canada

If you are holding a Toys “R” Us gift card, you will have to use it soon — and in person — or it will lose its value.

The embattled chain of toy stores placed the deadline on the cards after it filed for creditor protection in an Ontario court on Feb. 2.

Court documents indicate that the cards will only be accepted for 14 days after the filing, which means they must be redeemed by Feb. 16. There is no indication of what will happen to unused cards after that date. The company also said it is no longer issuing gift cards.

As well, the Toys “R” Us website can no longer be used to make purchases.

A message on the website reads: “Our web store is unavailable. We have filed for protection under the Companies’ Creditors Arrangement Act (CCAA). Please visit us in-store for all your needs. We appreciate your continued support.”

Canada’s largest toy store chain, Toys “R” Us, has asked for creditor protection to give it time to restructure and find a way to keep operating, either by reducing the number of stores or by finding a buyer.

In a release, the company said it is facing several issues, including pressures from rising inflation, labour costs, and a shift toward e-commerce.

The company also said unredeemed gift cards totalling $36 million have played havoc with its bookkeeping.

All stores will remain open during the process, the company says.

The company has seen its Canadian footprint shrink from a high of 81 stores to 22 that are still in operation, and it owes $120 million to vendors. Last month, it was reported that Toys “R” Us Canada is also facing at least seven lawsuits from landlords who say they’re collectively owed $31.3 million in unpaid rent and other damages from the struggling retailer.

Started in the U.S. in 1948, the company grew steadily, peaking in the 1980s before falling off significantly in the early 2000s and declaring bankruptcy stateside in 2017. Since then, it has continued to operate as a separate entity in Canada and is currently owned by Putnam Investments of Ancaster, Ont.