The fabrics and crafts retailer has filed for bankruptcy for the second time in a year.
As Joann Fabrics prepares to close hundreds of stores nationwide, all locations have started selling off their inventory at heavily discounted rates, but fans of the once popular crafting chain are criticizing an unexpected policy being used during the sales.
The company took to social media to announce going-out-of-business deals of 40% and 50% off its products amid the chain's final days open.
The move comes after Joann, which describes itself as "the nation’s category leader in sewing and fabrics with one of the largest arts and crafts offerings," announced plans to close hundreds of stores following a recent Chapter 11 bankruptcy filing. All Joann locations began going-out-of-business sales last month after a winning bid was made at auction.
"Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JOANN’s assets. In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the Company's operations and conduct going-out-of-business sales at all store locations," Joann said in a statement. "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. We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”
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But as stores remain open for the company's final sales, some shoppers were surprised by a policy that no longer allows gift cards.
"I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards. Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it. Wrong," one user wrote on the chain's social media post.
"So upset you cut off gift cards so quickly and with little notification," another stated.
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"Silently refusing Gift cards all of the sudden while closing permanently is DISGUSTING behavior," one user wrote.
Previous messaging had stated gift cards could not be used online and would only be accepted in-store, but as closure announcements evolved, Joann's revealed in a frequently asked questions page it would stop accepting gift cards after Feb. 28. The company was also no longer accepting returns.
"13 days was an unfair and unreasonable amount of time to get into store and use a gift card. What a stupid decision as I would have spent over the gift card balance but instead I walked out spending $0.00," one user said.
Meanwhile, the company's website says "due to high demand," the chain "can no longer fulfill online orders." An exact date for when stores will close has not yet been announced.
The closures come as a number of major chains also announce store closings.
Walgreens announced plans to close up to 1,200 “underperforming stores” by 2027. Kohl's announced 27 closures set for April of this year. Party City, a popular party and balloon supplies store, is closing hundreds of stores as it goes out of business.
