Toys "R" Us filed for bankruptcy protection in Canada and the United States this week, which means the stores will have to restructure if the business is to survive.
The proliferation of online retailing one of the major factors cutting into the chain's business — just as it has with other retail businesses, large and small. Making matters worse for Toys "R" Us, however, is the American parent company's $5.2 billion debt load.
But if you have a Toys "R" Us gift card lying around, you might be a little concerned. Are you still able to use it? The short answer is yes, but you might have a limited time to use it.
For the moment, it's business as usual at Toys "R" Us stores — and a statement from the company's president says the stores will continue to honor things like gift cards and warranties.
"The restructuring is intended to facilitate the continued success of our iconic brands; building a stronger company for our customers, business partners and team members," the statement from Toys "R" Us Canada president Melanie Teed-Murch reads. "We are confident that this process will enable us to leverage Toys "R" Us' existing strengths to succeed."
The company is essentially betting on a successful restructuring process — in that event, of course, nothing would change.