Joann Fabric Store Closures Ignite Fury Over Unhonored Gift Cards

The impending closure of every Joann fabric and craft store across the United States has sent shockwaves through the crafting community, but the situation has been significantly exacerbated by the company’s decision to cease honoring gift cards. This policy shift, announced alongside the mass store closures, has ignited widespread outrage among customers who now find themselves holding worthless pieces of plastic, despite the promise of going-out-of-business sales that will stretch on for months.

For many crafters, Joann has been a go-to destination for supplies, inspiration, and community. The closure represents not only the loss of a convenient retail outlet but also the unraveling of a familiar and cherished part of their creative lives. The added sting of invalidated gift cards adds insult to injury, transforming a bittersweet farewell into a frustrating financial loss.

The backlash has been swift and vocal, playing out across social media platforms. On a March 3rd Instagram post, where Joann encouraged customers to shop before the doors closed for good, the comments section quickly filled with expressions of anger and disappointment. One user lamented the company’s decision to cut off gift card usage with minimal notice, while another accused Joann of taking money for a product they now refuse to provide. "Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it. Wrong," the user wrote, capturing the sentiment of many.

X, formerly known as Twitter, has also become a forum for disgruntled customers to voice their grievances. One shopper shared their frustration at missing the opportunity to redeem their gift card, effectively losing $40. These individual stories paint a picture of widespread financial impact, as countless customers find themselves holding unusable gift cards of varying denominations.

The situation has become particularly contentious in Maine, where state law protects gift card holders from expiration dates. Maine’s law explicitly states that "a period of limitation may not be imposed on the owner’s right to redeem the gift obligation," raising questions about the legality of Joann’s policy within the state. USA TODAY has reached out to Joann for clarification on the gift card expiration issue and the mounting customer dissatisfaction.

The announcement of nationwide store closures came as a surprise, following earlier reports that only approximately 500 of Joann’s 800 U.S. locations would be shuttered. This abrupt reversal has fueled the sense of betrayal among customers, who feel misled by the company’s initial statements.

The mass closures are the culmination of a turbulent period for the Hudson, Ohio-based retailer. Joann filed for Chapter 11 bankruptcy for the second time in a year and subsequently auctioned off its remaining assets. The winning bid came from retail liquidator GA Group and Joann’s term lenders on February 22.

In a company statement, Joann leadership expressed that "JOANN leadership, our Board, advisors and legal partners made every possible effort to pursue a more favorable outcome that would keep the company in business. We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders."

However, these words ring hollow for many customers who feel directly impacted by the company’s decision to invalidate gift cards. The closure process began on Saturday, February 15, with going-out-of-business sales, but the company has clarified that only inventory available on-site at closing stores will be part of these sales. This means customers hoping to use their gift cards online are out of luck, further limiting their options and exacerbating their frustration.

The unfolding situation raises important questions about the ethical responsibility of companies facing bankruptcy and liquidation. While protecting creditors and ensuring a smooth transfer of assets is undoubtedly crucial, the treatment of customers, particularly those holding gift cards, should also be a priority.

The Joann case serves as a cautionary tale for consumers and businesses alike. It highlights the inherent risks associated with holding gift cards, especially from companies facing financial instability. It also underscores the importance of clear communication and transparency from businesses during times of crisis.

As Joann stores prepare to close their doors for the final time, the company’s legacy will be tarnished by the controversy surrounding unhonored gift cards. The outrage and disappointment expressed by customers serve as a reminder that even in the face of financial hardship, businesses must strive to maintain trust and integrity in their dealings with the public.

The issue extends beyond just monetary loss. For many, Joann was more than just a store; it was a community hub, a source of inspiration, and a place where creativity flourished. The closure represents a loss of that creative space, and the invalidation of gift cards adds a layer of bitterness to an already difficult situation. The impact will be felt throughout the crafting community, as individuals and groups search for new sources of supplies and inspiration. This also highlights the importance of supporting local, independent craft stores which can foster a sense of community and offer more personalized services. The future of crafting retail may look quite different in the absence of such a large national chain.