JOANN files for bankruptcy

[RenateW69623]

Joann Fabrics and Crafts has filed for Chapter 11 bankruptcy.  Anyone who has gift cards may want to use them ASAP.

[KellytheBelly]

Thanks, @RenateW69623!

Did a bit of researching and found the following articles...

[NPR]  The arts and crafts giant Joann files for bankruptcy, but stores will remain open

JOANN Enters into Agreement to Reduce Debt and Receive $132 Million in New Capital and Related Finan...  [Mar 18, 2024]

Joann — the craft store chain formerly known as Jo-Ann Fabrics — has filed for bankruptcy amid ongoing financial troubles.

But DIYers need not worry just yet: The company's more than 800 stores nationwide will remain open and its website will stay active as the Hudson, Ohio-based company restructures its finances.

"We remain committed to our suppliers, partners, Team Members and other stakeholders, and are focused on ensuring we continue to operate as usual so we can continue to best serve our millions of customers nationwide," Joann's chief financial officer Scott Sekella said in a statement.

Joann and certain affiliates have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

[LesL269823]

I had missed this notice, but not really a joann shopper. Similar happened with Boston Market, AARP offered cards, then the stores started closing.

Way back when, maybe around 2011, Borders, found a court to dispose of the stored value on many outstanding gift cards.

As I recall, and I am not a lawyer, for Borders, in court, those unredeemed cards were treated as an asset instead of a liability.

For the consumer, court fights until 2015 for the remaining value on those ended when they became officially worthless.

Sad to see AARP  pushing out cards for companies with an uncertain future. 

The amount of unredeemed cards overall is staggering, I have seen it reported as 20 billion recently.

Do we need more consumer protection on this? 

, 

[RenateW69623]

Hi @KellytheBelly 

Thanks for posting the details.  I just saw the headline, and since AARP has JOANN rewards, I wanted to let the community know.  Stores may be open for now, but they may start closing some of them in the near future to save money.

[jserramcorder]

I just got the latest gift card and I emailed JoAnns inquiring about using the card.  Was told they are still honored in store and online.  Asked if there was a timeline, did not really get a valid response.  Now I also wonder if you are also trying to use one of their percentage off coupons and the gift card, will they honor both?

[HokiePoq]

@RenateW69623   You are right.  I said the same thing a couple years ago about BB&B.  Stores did remain open for a while but are all gone now except for the online store.