JOANN Fabrics and Crafts, a beloved destination for craft enthusiasts, has announced the closure of all its stores nationwide, including eight locations in Idaho. This decision follows the company’s filing for Chapter 11 bankruptcy protection for the second time in less than a year.
The company’s financial struggles have been attributed to declining consumer demand and inventory challenges. In a move that has upset many loyal customers, JOANN ceased accepting gift cards as of February 28, 2025. This decision has left numerous patrons unable to redeem the value of their unused gift cards, leading to frustration and disappointment.
The timeline for store closures is fluid, with each location’s final day dependent on how quickly inventory is sold. However, reports indicate that most JOANN stores across the country will close by the end of May.
The cessation of gift card acceptance has been particularly contentious. Customers who were unaware of the February 28 deadline have expressed their dissatisfaction on social media platforms. One customer stated, “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.”
In addition to stopping the acceptance of gift cards, JOANN has also discontinued personalized discounts and discount partnerships for groups such as teachers, military personnel, and healthcare workers. Returns are no longer being accepted, and the company’s website and app have been limited to browsing and product availability information only; purchases must now be made in physical stores.
The abrupt policy changes have left many customers feeling betrayed, especially those who had recently purchased or received gift cards. While JOANN had provided information about the gift card redemption deadline on its restructuring website, many customers were unaware of this separate site and missed the opportunity to use their gift cards before the cutoff date.
For customers holding unused JOANN gift cards, options are limited. Filing a claim through the company’s bankruptcy proceedings is a possibility, but there is no guarantee of reimbursement, as gift card holders are considered unsecured creditors and are low on the priority list for repayment.
The closure of JOANN stores is part of a broader trend of retail bankruptcies and store closures affecting various sectors. For instance, Forever 21, another major retailer, has also filed for bankruptcy and plans to close all its U.S. stores. Customers with Forever 21 gift cards have until April 15, 2025, to redeem them.
As the retail landscape continues to evolve, consumers are advised to use gift cards promptly and stay informed about the financial health of retailers to avoid potential losses. The situation with JOANN Fabrics underscores the importance of timely redemption of gift cards and the need for clear communication from companies undergoing financial difficulties.
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