TIME is running out for people to redeem their Toys ‘R’ Us gift cards, with administrators McGrathNicol warning they will not be honoured after July 5.

A condition of using the gift cards is that they can only be used in store and customers have to spend an equivalent amount.

“For example, those who have a $100 gift card will need to purchase goods for $200 or more in store and pay the balance before they can access the full value of the card,” Commissioner for Consumer Protection David Hillyard explained.

“Customers who do not wish to spend the extra amount required to redeem the gift card should register as an unsecured creditor with the administrator.”

Lay-by items will be supplied but only if they have been paid in full by July 5.

“Should the goods not be provided, consumers who paid by credit card should contact their bank and seek a charge-back,” Mr Hillyard said.

“Consumers who have a warranty issue with their purchase will need to seek a repair or replacement directly from the manufacturer after the stores close.”

All 44 Toys ‘R’ Us and Babies ‘R’ Us stores in Australia are expected to close within weeks, leaving 700 people out of work after administrators failed to find a buyer for the business.

Stock is being cleared out during a closing down sale with up to 30 per cent off the lowest ticketed items.