Joann’s Gift Card Holders Face Tight Deadline to Claim Value Amidst Nationwide Store Closures
The abrupt and complete closure of all Joann stores across the United States has sent shockwaves through the crafting community and left many customers grappling with the unexpected devaluation of their Joann gift cards. Initial reports indicated that while the retail chain was experiencing financial difficulties, only a portion of its 800 U.S. locations would be shuttered. The subsequent announcement that every single store would close its doors, combined with the simultaneous declaration that gift cards would no longer be honored, ignited a firestorm of frustration and anger amongst loyal shoppers.
Customers, many of whom had received gift cards as presents or purchased them for future crafting projects, felt blindsided by the policy. The move, which essentially rendered their gift cards worthless, was viewed as a blatant disregard for customer loyalty and fair business practices. The sting was further exacerbated by the fact that going-out-of-business sales were already underway, creating a sense of urgency and a feeling that they were being denied the opportunity to utilize their store credit.
The abrupt change in policy drew immediate backlash, with customers taking to social media and other platforms to express their discontent. Many argued that the company had provided insufficient notice for them to redeem their gift card value before the closure announcement, making the situation even more unfair. The optics of refusing to honor gift cards while simultaneously conducting liquidation sales fueled accusations of opportunism and a lack of ethical consideration for their customer base.
Responding to the mounting pressure and negative publicity, Kroll, the claims agent representing Joann in its bankruptcy proceedings, has now established a process for gift card holders to file claims for reimbursement. This represents a significant, albeit somewhat belated, step towards addressing the concerns of affected customers. Individuals who believe they are owed money for unused Joann gift cards are now able to submit claims through Kroll’s dedicated website or via traditional mail.
The process requires gift card owners to act swiftly, as the deadline for filing claims is rapidly approaching on Friday, April 4, 2025, at 11:59 p.m. EST. This relatively short window adds to the urgency surrounding the situation, urging individuals to gather their gift cards and prepare their claims without delay.
To file a claim electronically, creditors are required to access an online form on Kroll’s website and provide their name and email address. Subsequently, they must electronically sign a proof of claim agreement, effectively formalizing their request for reimbursement. Further instructions and updates regarding the claim will then be communicated through the online portal. Customers are strongly encouraged to utilize this electronic method for its efficiency and ease of tracking.
For those who prefer a more traditional approach, Kroll also offers the option of submitting a hard copy of the claim form via mail. This requires individuals to first download the "proof of claim" form from Kroll’s website. Once completed, the form must be mailed to one of two designated New York addresses, depending on the type of mail service used. First-class mail should be sent to the Grand Central Station post office box, while hand deliveries or overnight courier services should be directed to the Brooklyn address.
Navigating the complexities of bankruptcy claims can be daunting, and Kroll has recognized the need to provide support for those navigating the process. They have established a dedicated restructuring hotline that customers can call with questions or concerns. The toll-free number, 844-712-2239, is available for domestic claims, while an international number, 646-863-7121, has been set up for claims originating outside the United States.
The mass closure of Joann stores followed the company’s second filing for Chapter 11 bankruptcy within a year, a stark indicator of the financial challenges it has been facing. Ultimately, the company’s assets were auctioned off, with retail liquidator GA Group and Joann’s term lenders emerging as the winning bidders on February 22nd.
In a statement released by Joann, the company leadership acknowledged that they had explored all possible avenues to keep the business afloat, but ultimately were unable to secure a more favorable outcome. They emphasized their commitment to working collaboratively with the winning bidder to ensure a smooth and orderly wind-down of operations, with the goal of minimizing the impact on all stakeholders, including employees, customers, and creditors.
The liquidation sales, which commenced on Saturday, February 15th, are limited to the inventory currently available at each individual store. This means that customers will not be able to order items online or transfer them from other locations. The company anticipates that the closure of all stores will take several months to complete, providing shoppers with a limited opportunity to purchase remaining merchandise at discounted prices.
While the opportunity to file a claim for unused gift cards offers a glimmer of hope for affected customers, the process serves as a reminder of the unpredictable nature of retail and the importance of carefully considering the risks associated with gift cards, especially in times of economic uncertainty. The deadline for filing claims is rapidly approaching, urging customers to act quickly and diligently to attempt to recover the value of their Joann gift cards. The resolution of these claims will undoubtedly be closely watched by the crafting community and serve as a case study in how companies navigate the complex landscape of bankruptcy and customer relations.
The contributions of Jonathan Limehouse and Patrick Williams from USA TODAY NETWORK are gratefully acknowledged.
