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What do you do when a company goes out of business, but you have a gift card for it? Well, as Joann gift card holders are finding out, you're often out of luck. Here’s what’s happening, and why people with Joann gift cards are mad about it.
Joann filed for bankruptcy for the second time in January 2025. Originally, it looked like a couple hundred stores would stay open thanks to being bought by another retailer, but those deals fell through.
Less than a month ago, Joann announced that all 800 of its stores will be closing and conducting a going-out-of-business sale. The chain has cited sluggish sales and inventory issues as the reasons for its financial woes.
All of Joann’s assets were purchased by GA Group, a retail liquidation company. That company is operating the going-out-of-business sales, not Joann. Therefore, they don’t accept Joann gift cards since they were not the company to issue them.
Other Joann things that are no longer valid include all coupons and discounts for teachers, military, Girl Scouts, and other groups. You also cannot return items anymore.
The last day to redeem Joann gift cards was February 28, according to a customer FAQ on the website created for information on the Joann bankruptcy process. Unfortunately, just three days before that was when the company announced that it was going out of business completely. That left only three days for Joann gift card holders to use their cards. Some people didn’t even hear about the bankruptcy until after gift cards were no longer valid, and that’s why so many people are angry now.
So unfortunately, if you still have a Joann gift card, you’re probably out of luck, unless you happen to live in Maine, where there’s a law that mightprotect you.
Even though this is how retail liquidation sales usually operate, people are upset because they only got three days' notice to use gift cards, and they’re venting on social media.
“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,” said one commenter on a Joann Instagram post.
“My friend had 5 [gift cards] she saved up so she could finally afford a sewing machine,” said another commenter. “We basically had no warning. All that money on those gift cards, wasted. It was disgusting.”
“I knew they were closing but had no idea about the gift cards either until I went online and couldn't use it,” commented another person on Instagram. “I called the store and Nope. $50 just thrown away. How is this not illegal?”
You can still try and score some good deals on Joann’s merchandise through its going-out-of-business sales. Like most of the sales run by liquidators, it’s a pretty slow roll, though, so don’t expect really big discounts of 50% or more right away. According to the restructuring website, the sales are expected to last about 12 weeks, unless a store sells out completely first. So that means the sales will last through the end of May, and that month will probably be when you can get the best deals.