Joann Inc., once a beloved destination for crafting enthusiasts, is now under fire from its customer base. This heated backlash comes on the heels of Joann’s decision to cease the acceptance of gift cards effective February 28, 2025, amid the company’s latest bankruptcy proceedings. Understandably, this abrupt move has sparked outrage on platforms like Instagram and Facebook, with loyal customers labeling the decision anything from 'highway robbery' to worse accusations.
Joann’s predicament stems from filing for Chapter 11 bankruptcy protection—first in January 2024 and then again in February 2025. This financial turbulence has led the company to make tough decisions, including plans to close all of its 800 U.S. stores. They’ve placed emphasis on the liquidation sales managed by GA Group, a well-known retail liquidator, which kicked off a 12-week process starting February to ensure stores are completely closed by late May.
Customer Frustration Boils Over
Many customers feel blindsided by the gift card policy change. Those who had purchased gift cards hoping to redeem them during the ongoing sales felt cheated, as the cards became nothing more than useless pieces of plastic. Complaints poured in on social media, capturing the widespread frustration and anger felt by the crafting community.
The outcry wasn’t just about financial loss; it was a betrayal of trust. Customers argued that if figures like Joann’s interim CEO, Michael Prendergast, expected goodwill from their patrons during this period, adequate notice and fairness were non-negotiable. For many, the inability to return items further compounded their grievances, leaving shoppers feeling trapped with their final purchases.
The Future of Joann
Despite these challenges, Joann stated that it remains focused on maximizing the business’s value through a court-supervised sale process. The restructuring plan aims to unite potential buyers with assets that totaled between $1 billion and $10 billion, according to the bankruptcy filings. While stores stay open for consumers to browse what's left, all final buying transactions must be made in-store, adding another layer to the shopper's navigation of Joann’s uncertain future.
The narrative surrounding Joann highlights an essential reflection on corporate ethics and consumer trust. While companies might face dire straits, the balance between salvaging a brand and respecting loyal customers can make or break reputations long after the last store closes its doors.