Joann ends gift card redemption amid store closures in Michigan. What’s happening now

Many arts and crafts hobbyists have been disappointed to find that their gift cards are no longer being accepted at Joann Fabrics as the chain conducts going-out-of-business sales and winds down operations.

The chain made the gift card announcement in a Customer FAQ after declaring bankruptcy for the second time in a year, explaining that gift cards would only be accepted through Feb. 28.

Since then, some customers have posted to the store’s social media to complain about missing the redemption window, asking why their gift cards can’t be accepted if they’ve already been paid for.

One such comment under the store’s March 13 Facebook post reads, “I still have gift cards that were given to me in Jan. If you knew you were closing then don’t sell them. They won’t take them.”

Find out more about the chain’s closures below.

Joann initially said it would be closing “approximately 500” of its 850 stores after filing for Chapter 11 bankruptcy. But after the chain was sold to a new ownership group, it said all of its stores would be shutting down.

“Following a comprehensive sale process and auction, GA Group together with the prepetitionterm loan agent, has been selected as the winning bidder to acquire substantially all of JOANN’sassets,” the company said in a statement. “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.”

The store continued, “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 move affects 41 stores in Michigan.

Joann Fabrics going-out-of-business sales started on Feb. 15, but stores will remain open as they clear out merchandise and fixtures.

Scott Carpenter, CEO of GA Group’s Retail Solutions and Wholesale & Industrial Solutions teams, told the Akron Beacon Journal that most stores would remain open through the end of May.

The chain announced on March 11 that its stores would be offering discounts of up to 50%, an increase from its previous 40% sale. The chain also said it will no longer be accepting online orders, only in-store purchases.

Joann had 41 stores across 40 towns in Michigan: