Another American retailer bites the dust—this time leaving loyal customers in the lurch. Joann Inc., the beloved craft store that has been a staple for hobbyists and small business owners, has sparked widespread outrage after abruptly refusing to honor gift cards past February 28.
The embattled retailer, which first filed for Chapter 11 bankruptcy in March 2024, is now in the process of shutting down operations entirely after a second bankruptcy filing. Instead of prioritizing customer trust, Joann has effectively turned its back on those who supported it for years, leaving many wondering if corporate mismanagement, poor financial planning, or a worsening economic climate under the current administration contributed to its downfall.
Joann’s assets have been scooped up by GA Group and its prepetition term loan agent, who have wasted no time launching going-out-of-business sales at all locations. The fire-sale strategy is set to run for about 12 weeks, until the end of May or until inventory is gone. But for customers holding Joann gift cards, the final days of the retailer’s existence bring little comfort—those cards are now worthless.
Customers across social media are furious, and rightfully so. One Facebook user slammed the move as “highway robbery,” pointing out the hypocrisy of Joann happily accepting money for gift cards but now refusing to honor them. An Instagram user echoed the frustration, calling the move “incredibly upsetting” and questioning the ethics of a company that took customers’ money without delivering on the promised goods.
Joann’s decision to cut off gift card usage with no real recourse comes as another slap in the face to American consumers, who are already feeling the sting of skyrocketing inflation and economic uncertainty. While big corporations and financial firms maneuver through bankruptcy laws to protect their interests, hardworking Americans are left holding the bag—yet again.
What’s worse, customers can’t even use their gift cards for online purchases; they must physically go to a store before the February 28 deadline to spend what they can before Joann shutters its doors for good. For many, that’s an impossible task. It’s a last insult to the crafters, small business owners, and families who spent years supporting the retailer through thick and thin.
With an estimated $1 billion to $10 billion in assets and liabilities, Joann’s bankruptcy underscores a larger issue plaguing American businesses: the struggle to survive in an unstable economy, burdened by poor corporate leadership and economic policies that are crushing consumer confidence. This isn’t just about one retailer failing—it’s about the broader collapse of businesses that once thrived in a strong economy but can’t seem to make it under current conditions.
Joann’s legacy will now be tarnished not by its decades of service to the crafting community, but by its disgraceful final act of refusing to honor its commitments to its customers. One thing is clear: American consumers are fed up with being taken advantage of, and they won’t forget who left them behind.
