There is more pain on the way for gift card holders, following the Voluntary Administration of Toys ‘R’ Us Australia.
The Administrators will not honour customer gift cards, unless those customers spend an additional equivalent amount at the stores. Ordinarily, under Australian law, gift card holders rank as unsecured creditors in a Voluntary Administration.
It’s not yet clear how much money will be lost by those gift card holders, but I will try and find out for you. In this struggling retail environment, should we just be telling our friends and family to stop buying gift cards all together?
Want to do something about it, send in your submissions to the Australian Treasury.
They are conducting an enquiry at the moment that closes on 30 May 2018, (https://consult.treasury.gov.au/market-and-competition-policy-division/c2018-t282459/).
