Here are the details about when to use your gift cards and when the clearance sales will begin + everything else you need to know. After disappointing holiday sales, the company announced plans to liquidate inventory and close down all 735 Toys”R”Us stores in the U.S. Toys”R”Us has identified a list of 200 top-performing stores that it is trying to sell off along with its Canadian operations to an undisclosed buyer.
Here is the latest:
When are Toys”R”Us stores closing?
All 30,000 Toys”R”Us employees will be paid through May 14th, but some stores are expected to shut down sooner than that. All stores should close by summer.
Will there be a liquidation event?
Yes, liquidation and going-out-of-business sales will begin in the next few weeks. Expect largest discounts in stores (vs. online) with tiered store-wide savings around 25% off that compound each until inventory is gone. The most popular toys will go first most likely. Toys”R”Us will run their own sales until May 14th. Then liquidators will come in and close out any remaining merchandise on May 15th. Liquidation sales are usually final.
Will Toys”R”Us close their website too?
Physical stores will close first. If a buyer doesn’t come in for the online business, it could be the end of Toys”R”Us entirely, including the Toys”R”Us website.
Are my Toys”R”Us gift cards still good?
Gift cards are to be used by March 22nd. Bankrupt retailers are not legally obligated to honor gift cards, so every day you don’t redeem involves some risk.
Is Babies”R”Us going out of business too?
Yes, All Babies”R”Us locations in the U.S. are set to close also.
What does this mean for shoppers?
The Toys”R”Us bankruptcy is bad for shoppers. It means a further consolidation of power for retail giants, namely Amazon. As competition in the marketplace declines, prices could rise and the small toy makers could get squeezed and go out of business, which means the loss of unique toys for kids. In the short term though, there will be deals! Amazon and Walmart prices might drop in an effort to retain toy sales levels during this time.
It should be a great time to stock up ahead of time for Christmas…
