Joann Inc.’s move to stop taking gift cards after Feb. 28 has angered some of the crafts retailer’s customers as the company winds down its operations.
The company announced earlier this year that it had entered Chapter 11 bankruptcy protection for a second time to “facilitate a sale process to maximize the value of its business.” Joann first filed for Chapter 11 in March 2024.
Joann said on Feb. 23 that GA Group and its prepetition term loan agent would become the owners of “substantially all” of the retailer’s assets, with those winning bidders having since started going-out-of-business sales at all Joann’s locations.
CRAFTS RETAILER JOANN CLOSING DOWN ALL U.S. STORES, ONE MONTH AFTER FILING CHAPTER 11 BANKRUPTCY
A document on the retailer’s restructuring website said Joann stores would “be accepting gift cards through February 28.”
The company has hundreds of locations across the U.S. The closing sales being held at the stores will last about 12 weeks “until the end of May, or until supplies last,” GA Group said in a press release earlier this month.
Social media users expressed dissatisfaction in recent days about not being able to use Joann gift cards.
A Facebook user called it “highway robbery” that Joann “will not honor gift cards when they gladly accepted the money for them.”
“I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards. Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it,” an Instagram user said.
“So upset you cut off gift cards so quickly and with little notification,” another Instagram user said.
FOX Business reached out to Joann for comment.
Joann said on its restructuring website that stores will keep their doors open until the closing sales end, with its website and app remaining operational during that time solely for browsing and product availability information. Customers must go to a physical store to make a purchase.
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In its January bankruptcy filing, the retailer estimated it had $1 billion-$10 billion in assets and liabilities.
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