Joann Customers Outraged as Gift Cards Become Invalid Amid Nationwide Store Closures

Joann Customers Outraged as Gift Cards Become Invalid Amid Nationwide Store Closures

Joann Shoppers Left Furious Over Sudden Gift Card Policy Change

As Joann prepares to shut down all of its stores across the nation, loyal customers have been hit with an unexpected and frustrating policy change—gift cards are no longer being accepted. The abrupt decision has sparked anger among shoppers, many of whom were hoping to use their store credits during the ongoing liquidation sales.

Customers Express Frustration Over Lost Gift Card Value

Joann’s announcement that gift cards would be rendered invalid, despite liquidation sales continuing for several months, has left many customers feeling deceived. Social media users have flooded Joann’s pages with complaints, expressing frustration over the sudden loss of their funds.

One disgruntled customer took to Instagram, commenting on Joann’s March 3 post, which urged shoppers to make purchases before stores close for good. “I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards,” the user wrote. “Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it. Wrong.”

Another shopper lamented the loss of a $40 gift card they were unable to use before the policy changed.

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Bankruptcy and Closures: A Grim Ending for Joann

Joann’s financial troubles began in March 2024, when the company filed for Chapter 11 bankruptcy but managed to stay afloat through privatization efforts. However, less than a year later, a second bankruptcy filing in January 2025 forced the company into full closure mode.

As part of its liquidation strategy, Joann has launched massive clearance sales, slashing prices by up to 90% on various crafting supplies. Despite these deep discounts, the refusal to honor gift cards has tarnished the brand’s final days, leaving many customers feeling betrayed.

Joann’s Leadership Expresses Regret

In an official statement, Joann’s leadership acknowledged the disappointment and hardship caused by the closures. “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 stated. “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.”

Interim Chief Executive Officer Michael Prendergast also addressed the company’s ongoing struggles, explaining that Joann had faced “significant and lasting challenges” that ultimately made survival impossible. The decision to close all stores was a last resort in hopes of navigating the company’s financial woes.

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What’s Next for Customers?

With Joann on track to disappear from the retail landscape, shoppers who still hold gift cards are left without recourse. The best option for those impacted is to monitor ongoing liquidation sales for potential price drops and take advantage of remaining inventory before stores shutter permanently.

As Joann fades into retail history, the backlash from customers serves as a reminder of the importance of transparency and consumer trust—even in the face of corporate bankruptcy.

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