Toys R Us is facing pressure from Washington to redeem gift cards for cash amid reports the retailer is preparing for liquidation.
Senate Minority Leader Charles Schumer, D-New York, sent a letter Wednesday to the acting chairwoman of the Federal Trade Commission, leaning on her to act to ensure consumers have time to use their existing gift cards before Toys R Us closes up shop.
Ideally, consumers would be able to redeem the gift cards for cash, Schumer wrote.
"I also ask the FTC to do what it can to ensure that Toys R Us is taking every possible step to honor its existing terms of service for its gift cards," Schumer wrote to Maureen Ohlhausen, the acting chair.
"It is critical that consumers have a full opportunity to take advantage of their gift cards before the stores close."
USA TODAY and multiple outlets reported the iconic toy retailer was drafting paperwork to file for Chapter 11 liquidation and could go to court as soon as Wednesday, citing people familiar with the matter.
In his letter, Schumer expressed concern about fate of the millions of dollars worth of outstanding gift cards, many of which were purchased around the recent holiday season.
Toys R Us has about 800 locations across the U.S., though the company had previously announced plans to shutter about 180 of them.
"To date, Toys R Us has not stated what will happen to the remaining gift card balance for users after liquidation, nor have they indicated that they will provide consumers with an opportunity to trade that balance for a cash value," Schumer wrote. "This could mean countless American consumers are left with very little time to use their gift cards before their local stores close."
The company did not immediately respond to a request for comment Wednesday.
