JOANN Fabrics and Crafts has caught some backlash from customers over gift cards as it continues mass closures nationwide.
The beloved retailer is in the middle of going-out-of-business sales at all of its 800 locations.
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Discounts are as high as 40% off everything in-store, according to a recent post on Joann’s Instagram page.
“Hurry in for best selection before all of our stores close!” a caption read.
The liquidation process began after Joann filed for bankruptcy in January, citing around $615 million in debt.
Monthly costs to keep stores operational were $26 million alone.
Read More on Store Closures
While it was initially expected to close around 530 of its stores and continue operating the remaining 270, Joann confirmed last month that it would shutter everything.
It also noted that while final sales were going on, customer gift cards would be accepted until February 28, a date that has since passed.
CARD CHAOS
Still, shoppers are furious that the gift cards aren’t honored as the closures continue.
“I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards,” someone fumed in Joann’s Instagram post about the 40% off sales.
“Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it. Wrong.”
“So upset you cut off gift cards so quickly and with little notification,” another echoed.
Others were so mad they accused the retailer of “theft and fraud” for limiting gift card usage, although that’s not accurate.
Despite the fury, most shoppers are still simply sad that Joann is closing down for good.
“Nooo, my favorite store,” a longtime customer wrote.
“My heart hurts a lil’ bit,” someone else added.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
“RIP Joann’s you were a real one,” said a third.
SECOND TIME AROUND
January’s bankruptcy marks the second Chapter 11 filing in about a year for the brand.
It had previously gone bankrupt in March 2024, with over $500 million in debt.
About a month later, it emerged as a private company instead of public after finding a buyer, and didn’t close any stores.
This time, however, that didn’t happen.
Joann isn’t alone in its bankruptcy woes either.
Several retailers have filed in the past year, with hundreds and hundreds of shutdowns.
Big Lots notably went bankrupt in September, and is set to keep only around 200 stores open after having well over 1,000 at the time of filing.
LL Flooring also filed for bankruptcy around the same time, and has reverted to its old name of Lumber Liquidators while axing over 200 stores.
