Joann Fabrics, a beloved name in the world of crafting and fabric supplies, is shutting down all 800 of its locations across the United States after more than 80 years in business. The announcement has sent shockwaves through its loyal customer base, particularly those who hold unused gift cards, as the company has declared that these cards will no longer be redeemable despite ongoing liquidation sales. This decision has sparked outrage among many customers, who feel blindsided by the abrupt policy change.
When Joann announced its closure, it also revealed that gift cards would no longer be accepted at any of its stores. This decision has left many customers frustrated and angry, especially those who had purchased or received gift cards before the announcement. Some have taken to social media to express their disappointment and outrage. One Instagram user commented on Joann’s post promoting its going-out-of-business sales, stating, “I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards. Your business took money and now refuses to give the product in exchange for it. Wrong.” Another shopper shared their story on X (formerly Twitter), lamenting that they missed their chance to use a $40 gift card, which is now effectively worthless.
The issue has been particularly contentious in states like Maine, where laws prohibit expiration dates on gift certificates. According to Maine state law, “a period of limitation may not be imposed on the owner’s right to redeem the gift obligation.” Despite this legal protection, Joann has maintained its stance on discontinuing gift card usage.
Joann’s closure is part of a larger trend of retail struggles in 2025. The company first filed for Chapter 11 bankruptcy in March 2024 but briefly emerged from court supervision before filing for bankruptcy again in January 2025—a situation known informally as “Chapter 22” among restructuring experts. The Hudson, Ohio-based retailer cited mounting debt and declining sales as key reasons for its financial troubles.
Originally, Joann planned to close around 500 of its 800 stores while keeping the remaining locations operational. However, after failing to find a buyer willing to keep the company afloat, Joann announced that all stores would shut down permanently. The company’s assets were acquired by GA Group and Joann’s term lenders during an auction process. The new owners have since begun liquidation sales at all store locations and online.
According to retail analysts, Joann faced significant challenges competing with online platforms and rival brick-and-mortar stores like Hobby Lobby and Michaels. Neil Saunders, managing director at GlobalData, noted that Joann struggled with inventory shortages and run-down store appearances, which drove customers away. These issues were compounded by suppliers’ reluctance to work with a company perceived as financially unstable.
Joann’s journey began in 1943 as the Cleveland Fabric Shop in Ohio. By 1963, it had expanded to 18 locations and adopted the name “Jo-Ann Fabrics,” inspired by the names of the founders’ daughters: Joan and Jacqueline Ann. The company grew rapidly over the decades, going public in 1969 and reaching its peak as the largest fabric and crafts retailer in the U.S. by 1998.
During the early days of the COVID-19 pandemic, Joann experienced a surge in sales as DIY projects became popular among homebound consumers. In fiscal year 2021 alone, sales rose by an impressive 23.5%. However, this boom was short-lived; mounting debt and increased competition soon led Joann into financial trouble.
As part of its closure process, Joann has initiated going-out-of-business sales at all locations and online through its website and mobile app. These sales include discounts on fabrics, yarns, sewing supplies, machines, and home décor items. While customers can still shop during these final weeks of operation, personalized discounts for groups like Girl Scouts and educators have been suspended. Returns are also no longer being accepted.
Joann’s website FAQ states that store closure dates will be announced gradually over time. Customers are encouraged to check the website or app regularly for updates on specific store closing timelines.
The closure of all Joann stores will leave approximately 19,000 employees without jobs—15,600 of whom are part-time workers. This adds to a growing wave of retail closures in 2025; industry experts estimate that around 15,000 stores across various brands will shut down this year—more than double the closures seen in 2024.
For those still holding gift cards or hoping to snag deals during liquidation sales, time is running out. Gift cards were only valid through February 28, leaving many customers scrambling to use them before they became void. While some shoppers have managed to take advantage of discounted items during liquidation sales, others remain bitter about losing money tied up in unused gift cards.
As one of America’s largest craft retailers prepares to close its doors forever, loyal customers are left grappling with disappointment over both lost shopping opportunities and unresolved financial grievances. For crafting enthusiasts nationwide, Joann’s departure marks not just the end of an era but also a stark reminder of how rapidly retail landscapes can shift—and how those changes can leave consumers feeling abandoned in their wake.
