Joann Warns Its U.S. Customers: Radical Shift in a Few Days

Joann Inc., the famous fabric and craft chain, has surprised its thousands of customers in the United States with a radical shift in its closure strategy. The store, which previously operated under the name Joann Fabrics, declared bankruptcy in early 2025. Following this announcement, the company began making drastic decisions, such as stopping the acceptance of gift cards much earlier than promised.

Initially, Joann had committed to accepting gift cards until the end of February. However, in recent days the company announced that it would stop accepting them in a very short time. This sudden change has left many customers frustrated.

According to Syracuse, Joann Inc. has closed all its 800 stores in the United States as part of its liquidation process. The chain had planned to keep around 300 locations open, but on February 24, it announced that it would change course and close all its stores. This news was unexpected, as many customers thought the stores would continue operating until May.

In a recent message, Joann explained that customers would only have until February 28 to redeem their gift cards. This gave consumers only five days' notice. As a result, many were left without the opportunity to use their card balances.

Joann Customers React and the Company Receives Numerous Complaints on Social Media

The speed with which Joann stopped accepting gift cards caused many complaints on social media. Several customers expressed themselves on platforms like Facebook, showing their discontent with the lack of advance notice of the decision.

A customer posted on X —formerly Twitter—: “It should be illegal for Joann to stop accepting gift cards so quickly. They already had my money and now they don't give me what I paid for!”

Another user commented on Joann's official Facebook page: “I'm so upset that they cut off the gift cards so quickly and with so little notice.”

A third customer also expressed their frustration: “It's incredibly annoying that they cut off our ability to use the gift cards.” The customer added: “Regardless of them closing, they took my money and now refuse to give the product in return. It's wrong.”

Joann's Bankruptcy Process and the Consequences for Customers

Shelly Hunter, a gift card expert and communications director at e-Gifter, explained to MarketWatch that what happened with Joann is a common phenomenon in bankruptcies. When a company declares bankruptcy, its assets are transferred to a liquidator. This can lead to a cutoff date for the return of products, store credits, and gift cards.

In Joann's case, the assets were acquired by the financial services company GA Group in a bankruptcy auction. Shelly Hunter commented that many buyers make the mistake of waiting to redeem their gift cards, hoping that discounts will increase in liquidation sales. Closing sales usually start with discounts of 10 or 20%, but can increase to 50 or 70%.

However, Hunter warned that consumers shouldn't wait too long, as it could be too late. “Don't wait to get more money, or think that discounts will rise to 70%, it could be a big mistake,” she added.

Is There a Possibility to Recover the Gift Card Balance?

Despite Joann's decision to stop accepting gift cards, customers still have a chance to recover their money. The New York State Consumer Protection Department reported that consumers can file a claim online to try to obtain the value of their cards. Claims must be submitted before April 4 through the website Kroll.com.

However, the claims process can be slow. Creditors owed large amounts of money will receive payment first. Customers might receive their refund later. In some cases, bankruptcy courts can also extend the deadline for accepting gift cards.