Administrators for Toys R Us and Babies R US have failed to secure a buyer for the embattled business which entered voluntary administration in May this year.
The shocking worldwide closures of one of the world's most recognised brands has been attributed to the rise of online shopping platforms like Amazon and changing trends in the toy market.
Australia's 44 stores nationwide had remained trading since the administration news first broke earlier this year, however now over 700 employees have received notice that their jobs will be gone within weeks.
Administrators, McGrathNicol said stock will now be liquidated through sales at existing stores before they, along with the head office and Sydney-based distribution centre close "in coming weeks".
Online shoppers have until June 22 after which time the Toys R Us's online ordering system will be closed. Administrators say open online orders will be delivered to customers in cases where they have paid in full and stock is available.
In May, a spokesman for the company assured customers that it was business as usual: "Our gift cards, VIP club points, lay-buy, returns policy and other services remain unchanged."
However with news of the failure to sell the company's assets, comes the word that there will be a change to way customers can redeem their vouchers. People holding gift cards for the stores will be able to use them until July 5, provided they spend an additional amount equal to the value of the card.
Holders of $50 cards will need to spend $100 in total, and so forth, in order to redeem their vouchers at the stores while they are still open.
Lay-by customers will now have until July 5 to complete their purchase, with the company promising to honour all existing laybys until that date.