Amid widespread speculation that Toys R Us may announce this week it is closing all of its stores, Senator Charles Schumer is urging the bankrupt retail to take action to protect consumers.
The Senate Minority Leader has sent a letter to the acting chairwoman of the Federal Trade Commission, asking her to put pressure on the company to allow consumers with Toys R Us gift cards to exchange them for cash.
"With the entire Toys R Us operation at risk of shutting its doors for good, I am urging the company to redeem outstanding gift cards for cash so they are not as worthless and unwanted as a lump of coal in a stocking," Schumer said in a release.
Toys R Us filed for bankruptcy in September, saddled with a $5 million debt load. The toy company was hopeful a strong holiday season would help turn around its fortunes, but its financial situation has only gotten worse.
Toys R Us has 800 remaining stores in the U.S., including locations in Amherst, Clarence and Blasdell. Today it announced it was closing all of its 75 remaining stores in the United Kingdom.