Background on Joann’s Bankruptcy

Joann Inc. has recently declared that it will discontinue the acceptance of gift cards after February 28, 2025, prompting significant dissatisfaction among its customer base. Earlier this year, the crafts retailer filed for Chapter 11 bankruptcy protection for the second time, having initially filed in March 2024. The aim is to streamline a sale process that maximizes the business’s value.

Current Operations and Store Closures

On February 23, Joann announced that GA Group and its prepetition term loan agent would acquire “substantially all” of the company’s assets. Following this announcement, liquidation sales have commenced at all Joann locations throughout the United States.

According to the retailer’s restructuring website, stores will continue accepting gift cards until the end of February. The closing sales are expected to last approximately 12 weeks, concluding by the end of May or until inventory is depleted.

Customer Reactions

Customer backlash has been significant, particularly on social media platforms where many expressed their disappointment over the gift card policy change. One Facebook user described it as “highway robbery,” expressing frustration that Joann refuses to honor the gift cards for which customers have already paid.

Another Instagram user noted, “I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards,” highlighting the emotional response to Joann’s abrupt decision.

Operational Changes

As Joann moves forward with its restructuring and store closures, the retailer has assured customers that its website and app will remain accessible for browsing, although purchases must be made in-store.

Financial Overview

In its most recent bankruptcy filing, Joann reported its assets and liabilities to be in the range of $1 billion to $10 billion, indicating a significant financial challenge as it restructures its operations.