JOANN Is No Longer Accepting Store Gift Cards, Disappointing Customers Seeking Discounts

Craft supplies retailer JOANN is closing every store in the U.S. While that is upsetting enough for art project enthusiasts, the stores that haven’t shut down yet are no longer accepting gift cards as a payment method.

Understandably, customers are furious being stuck with useless cards as JOANN initiates going-out-of-business sales across the country. The retailer also ended discounts for specialized groups like teachers, healthcare workers, and military personnel.

“I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards,” one Instagram user commented. “Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it.”

While infuriating, the ability to accept gift cards may not be under JOANN’s control during the bankruptcy process. When a company files for Chapter 11 protection, the court can define gift card holders as creditors, meaning customers must file a claim to obtain funds, according to CBS News.

JOANN Is Closing Stores Nationwide After Bankruptcy Filing

In the past 12 months, JOANN has filed for bankruptcy twice — once in March 2024 and again in January. However, despite a much-needed injection of cash, the retailer began closing locations, ultimately announcing it was shuttering all 850 stores.

“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 company stated. “We deeply appreciate our dedicated Team Members, our customers and communities across the nation for their unwavering support for more than 80 years.”

It was a weakening of customer demand that led to the downfall of JOANN. While the retailer had many loyal customers over the years, it simply could not effectively compete against giants like Walmart, Amazon, and Hobby Lobby.

As JOANN completes the store closings over the next few weeks, many locations are discounting inventory up to 40%. The going-out-of-business sales are scheduled to continue until at least the end of May or while “supplies last.”

As of now, customers can still use the app and JOANN’s website, but purchases are only allowed at physical locations. Customers cannot return any previously purchased items. And, of course, no gift cards are being accepted.