Toys “R” Us and Babies “R” Us customers are advised by the CT BBB to move quickly to redeem store gift cards and reward points, and to make alternative arrangements for baby registry accounts.
The company says it will honor store gift cards for 30 days, so it’s best to move quickly to use or redeem those cards for cash before they are rendered useless.
A company spokesman is quoted as saying the Babies “R” Us baby registry and rewards programs continue to operate. However, there is no telling how long that will last.
“A number of very large, well-known companies have gone out of business in recent years,” according to CT BBB’s Howard Schwartz. “Bankruptcies may be related to poor end-of-year holiday sales, competitive pricing at big box stores and consumers’ changing purchasing preferences in stores and online. From the retailers’ perspective, an online presence is a fraction of the cost of operating hundreds of stores.”
Fortunately for customers, the company gave advanced notice it was shutting down. In other situations when a company is going through bankruptcy proceedings, it may cease all operations without any advance notice.
It is not all bad news for consumers. Liquidation sales are expected over the next several weeks as the company moves to clear its inventory. The caveat is that items bought during a liquidation will likely not be eligible for return or exchange.
Tips for existing customers and consumers who are looking for bankruptcy bargains:
Check for the latest information – Visit the company’s websites and social media profiles for updated information, and look for the site’s page that is dedicated to Frequently Asked Questions (FAQs).
Don’t wait – This is a message that is worth repeating. If you have gift cards, store credits, reward program points or a baby registry, move as quickly as possible. Conditions may force unexpected changes, so experts remind us to “use it or lose it.”
Find out what will happen with a store-issued credit card – The good news is that in some cases, just because a store opts to close its doors doesn’t automatically mean that its branded credit cards will be useless.
In this case, the company’s retail website is still up and running at the moment, so you may be able to use the card online. If you want more information contact the store’s credit card division.