PORTLAND, Ore. -- Oregon's attorney general warned shoppers Monday that they need to use it or lose it if they have a gift card from KB Toys stores.

KB Toys is liquidating all of its stores under the supervision of the U.S. Bankruptcy Court in Delaware.

The company estimates there's 12 million unused gift cards outstanding.

The toy store has notified the Oregon Department of Justice that no KB Toys stores in Oregon or Washington will honor gift cards and merchandise credits after they close on Jan. 11. Most stores across the country stopped accepting gift cards as of Jan. 1.

Oregon Attorney General John Kroger said in a statement that the company agreed to several additional terms to protect consumers in connection with its store closing sales, including a promise that it will honor all manufacturers' warranties and accept returns of defective merchandise sold during the store closing sales.

KB Toys has stores at the Lincoln City, Seaside, Woodburn and Troutdale outlet malls. In Washington, KB toys is located at outlet malls in Centralia and North Bend.

There's also a retail store in the Vancouver Mall.