A beloved toy retailer since 1950 (who among us didn't want to be a "Toys R Us kid"?), Toys R Us announced they were voluntarily filing for bankruptcy on Monday, Sept. 18. The chain released the news just weeks before the holiday shopping season moves into full swing.
The chapter 11 bankruptcy filings will get them some much-needed help restructuring their $5 million in debt. Like most brick and mortars, Toys R Us has struggled to hold its own against online retailers like Amazon while battling fierce competition from large chain stores like Walmart and Target, which can drive down toy prices.
Chairman and Chief Executive Officer Dave Brandon says the changes will "provide [Toys R Us] with greater financial flexibility to invest in our business, continue to improve the customer experience in our physical stores and online, and strengthen our competitive position in an increasingly challenging and rapidly changing retail marketplace worldwide."
Here's what we know so far about how the chapter 11 bankruptcy filings will impact shoppers.
Is my store closing?
No, not yet. According to the aforementioned statement, of the 1,600 or so Toys R Us stores, many of them are still profitable and will remain open. Toys R Us will also maintain their recently opened toysrus.com and babiesrus.com stores.
Will there be liquidation sales?
Again, the answer is no, not yet. As of now, stores will be open so there is no need to sell off merchandise.
Is anything going to happen to my registries?
Nope! If you have a registry at Babies R Us, nothing will change.
Are my Toys R Us gift cards still good?
Yes. All gift cards will be honored. If the company changes its policies in the future, you should get a heads up far in advance so you can use them up before they're no longer valid.
Are return policies and warranties still in place?
Also, yes. Toys R Us will still accept all returns and warranties in accordance with current policies.
Can I still use my Toys R Us credit card?
What about the Toys R Us rewards program?
Rejoice — it's still in effect!
How will bankruptcy filings affect my ability to get must-have holiday gifts?
The company has said they are "well stocked as we prepare for the holiday season and are excited about all of our upcoming in-store events." So chances are that if you get there early enough, the stores will still have all the toys you need.
I'm a Toys R Us employee. Will I lose my job?
No. During the restructure, Toys R Us says it will retain its employees and their vacation time and current salaries. That said, you can always talk to your manager or HR department if you have questions.
Surprise the grandkids this Christmas with Prince George's favorite toy.