Toys “R” Us Canada gift cards are no longer being accepted as of today, Monday, February 16, 2026, following a decision made during creditor protection proceedings.
The retailer initiated the proceedings earlier this month as it faced mounting financial difficulties and an inability to meet its financial obligations. Court filings revealed the company held over $36 million in outstanding gift card liabilities at the time of the filing. A judge subsequently authorized the cessation of gift card acceptance after a 14-day grace period, which concluded today.
The move impacts customers holding unused gift cards, limiting their ability to purchase merchandise. Prior to seeking creditor protection, Toys “R” Us Canada temporarily suspended online sales to facilitate a website overhaul. E-commerce operations have not been restored, meaning gift cards can only be redeemed at physical store locations, if open.
The court has also granted Toys “R” Us Canada permission to potentially liquidate additional stores beyond its current footprint of 22 locations, contingent on the outcome of lease negotiations with landlords. The company is currently attempting to renegotiate lease terms to reduce costs and improve its financial position.
Financial distress at Toys “R” Us Canada has been compounded by lawsuits from both landlords and suppliers, according to reports. These legal challenges further complicate the retailer’s restructuring efforts and its ability to navigate the current economic climate.