After disappointing holiday sales, Toys”R”Us announced bankruptcy and the closing of 182 of the stores in January 2018. But, rumors of imminent shutdown were confirmed today, when in a press release this morning, 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. The sale is likely the only hope that the retailer will not disappear entirely this year.
When is Toys”R”Us closing?
All 30,000 Toys”R”Us employees will be paid through May 14th, but some stores could shut down even sooner. Expect stores’ closures by summer.
Will there be a Toys”R”Us liquidation event?
Yes. Liquidation and going-out-of-business sales will begin in the next few weeks. Expect deepest discounts in stores with tiered store-wide savings around 25% off that compound week after week until inventory is gone.
Use the Toys”R”Us store locator in coming weeks to see close dates for your local Toys”R”Us locations. Toys”R”Us will run their own sales until May 14th, and then liquidators will come in and close out any remaining merchandise on May 15th.
In most liquidation scenarios, all sales are final.
Can I still use my Toys”R”Us gift card?
Toys”R”Us gift cards are valid only through April 13, 2018 — that’s 30 days from today. As it stands today, this one deadline applies to in-store and online purchases.
The strategy: save your gift card until April 1st in hopes of a liquidation sale. Here at KCL, we’re even watching gift card resellers for giant discounts on Toys”R”Us gift cards in coming weeks. Toys R Us gift cards will no longer be sold in stores, effective immediately.
Bankrupt retailers are not legally obligated to honor gift cards, so every day you don’t redeem involves some risk.
Will Toys”R”Us close their website?
U.S. stores will close first. But if the buyer for the Canadian stores + ToysRUs.com + potentially the top performing U.S. stores fall through, it could be the end of Toys”R”Us entirely, including ToysRUs.com
Is Babies”R”Us going out of business too?
All Babies”R”Us locations in the U.S. are set to close. The fate of BabiesRUs.com is the same as ToysRUs.com. Baby registries will not be lost in the next 30 days, but beyond that, there is no guarantee.
What does this mean for shoppers?
The Toys”R”Us bankruptcy is bad for shoppers. It points towards a consolidation of power for retail giants, namely Amazon. As competition in the marketplace declines, prices will rise.
In the short term, however, there will certainly be deals. March and April are not typically months where we see great deals on toys. November, December and July tend to be the best months to buy toys. But this Toys”R”Us liquidation will change everything.
Amazon and Walmart prices will likely drop in an effort to retain category sales through July Prime Day. eBay will become a hotbed for toy deals from opportunistic resellers who shop the Toys”R”Us liquidation to make a profit. Gift card deals will spike until they disappear entirely.
Here at KCL, we’ll cover all the best deals to make it easy to save. Clear some space in the attic, and plan to do your Christmas shopping before tax day.
UPDATE 3/15/18 10:30PM EST FROM TOYS”R”US EMPLOYEE
We as employees are being paid through the 14th of May. Gift cards are to be used by March 22nd. 10% off Thursday’s with the TRU credit card was still effective today. No TRU or 3rd party gift cards can be sold. Liquidators come in after the 14th of May.