Joann is no longer accepting store gift cards as it closes locations

Craft retailer Joann is no longer accepting gift cards as it moves to close all of its stores, after filing for Chapter 11 bankruptcy protection for a second time, leading to frustration among its remaining customers. 

The 80-year-old fabric and crafts retailer said it would stop accepting gift cards after Feb. 28, when it announced it was winding down operations at all stores nationwide. The company at the time added that it would also end all personalized discounts and discount partnerships for groups including teachers, military personnel and health care workers.

Customers who missed the window to redeem their gift card balances expressed their disappointment at the move on social media, amid going-out-of-business sales.

“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. Wrong,” one customer wrote.  

“So upset you cut off gift cards so quickly and with little notification,” said another social media user.

Laws around gift card consumer protection vary by state, however when a retailer declares bankruptcy payments are frozen and creditors, including gift card holders, must file claims in order to receive their funds back, according to giftcards.com. In other words, the court decides if the retailer may continue to honor gift cards through a given date. 

Joann attributes its struggles to lackluster consumer demand. And after failing to find a buyer that would keep its stores open, announced last month that all Joann locations would close. 

A Joann spokesperson this week said in a statement that it “made every possible effort to pursue a more favorable outcome that would keep the company in business.”