"Joann’s Sparks Outrage by Halting Gift Card Use Amid Store Closures"

Joann’s has stopped accepting gift cards after announcing last month that all 800 of its stores will close. However, going-out-of-business sales are still ongoing, leaving many customers outraged.

For fabric and craft enthusiasts, the nationwide shutdown of Joann stores is disappointing—but even more so for those holding gift cards. When the retailer announced its impending closure, it also stated that gift cards would no longer be honored at any location. This decision has sparked frustration, as customers are now unable to use their remaining balances, despite liquidation sales continuing for months.

On March 3, Joann’s posted on Instagram urging shoppers to visit before stores close, prompting backlash from customers. One user expressed frustration over the abrupt gift card cutoff, while another accused the company of taking their money without fulfilling its obligation. “Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it. Wrong," they wrote.

Another shopper shared on X (formerly Twitter) that they missed their chance to use a $40 gift card, leaving them with a total loss. In Maine, customers are particularly upset due to a state law prohibiting expiration dates on gift certificates, stating that "a period of limitation may not be imposed on the owner's right to redeem the gift obligation."

USA TODAY has reached out to Joann’s for comment regarding the expired gift cards and customer frustration.

Why Is Joann’s Closing?

Joann’s announced last month that all of its stores would shut down, an increase from its initial plan to close around 500 of its 800 U.S. locations.

The company, based in Hudson, Ohio, filed for Chapter 11 bankruptcy for the second time within a year and auctioned off its remaining assets. On Feb. 22, retail liquidator GA Group, alongside Joann’s term lenders, won the bid for the company.

"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," the company said in a statement. "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."

When Will Joann’s Close for Good?

Joann’s began its going-out-of-business sales on Saturday, Feb. 15, though the full closure process is expected to take months.

"Only inventory available on-site at those stores will be part of the closing sales," the company stated in a press release.