Toys " R " Us Australia appoints voluntary administrator

After the collapse of the franchise in Britain and the USA , Toys "R " Us Australia has gone into voluntary administration . Read link below .


Toys R Us released the following advice on its Facebook page:

You’ll notice that they require an ‘equivalent amount to be spent’ in store to utilise any gift vouchers. While this may be legal, we think it’s a dodgy practice and have previously made a submission to the senate (PDF) calling for changes.


I noticed that concerning the gift vouchers . May be legal but certainly questionable .


When is cash not cash…when it’s a Gift Card. So they have the money from the purchase of the gift card but now want to double their sales if you use one, it’s just another rip off.

I wish Gift Cards had the same standing as Secured Creditors do now in winding up businesses or those in Administration. Then they would be perhaps more careful in the way they treat Gift Card holders, I could just imagine a meeting of Creditors with Gift Card holders allowed to vote on the amount of reimbursement received for secured debts. What results would come out of that and how differently Gift Card holders would be treated.


Due to significant losses, the US parent has gone into adminstration and is closing down all the US stores.

There was hope that the Australian arm would be saved if they could find a buyer of this part of the business.

I would be a very wary (personally wouldn’t do it) of buying anything online from the Australian arm just in case they cease operations between purchase and dispatch of the purchases. If this occurs, one would be classed as a creditor like anyone owned monies by the Australian arm of the business.

Buying from brick and mortar stores would not be an issue as the manufacturer (as long as it isn’t a Toys-R-Us in store brand), still has to provide remedies under the ACL for its goods, should there be a fault after purchase. If it is Toy-R-Us in store brand, obtaining remedy after purcahse and closure could be difficult.


We’ve received some reports that some Toys R Us stores are telling customers that gift cards are only valid for 50% of their monetary value. If you find this is the case, we’d encourage consumers to contact their banks and have them perform a chargeback to recover their full costs.