Joann Fabrics is in the process of closing all its stores after declaring bankruptcy earlier this year. All locations have begun a liquidation sale, although customers are dissatisfied with one of the measures taken regarding gift cards. Do you have one? Here’s when you can use it.
Until when can I use Joann gift cards?
We have bad news for you, as although the stores are still operating, the company is no longer accepting gift cards as payment. Therefore, customers with remaining balances on their gift cards have essentially lost them.
When will stores close?
According to the company, all stores are expected to close this spring, specifically in May.
Why did Joann file for bankruptcy?
In January, Joann publicly filed for Chapter 11 bankruptcy for the second time in one year, this time in the United States Bankruptcy Court for the District of Delaware.
The company formalized its bankruptcy in March 2024 and, in April, became a private entity under the control of its creditors. According to the most recent court filings, its debts range between $1 billion and $10 billion.
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In an official statement, the company noted that after exiting a previous restructuring process, it faced serious limitations due to its high debt load, leaving little room for operational errors. However, Joann was unable to overcome various obstacles and is now facing insolvency again.
Inventory management issues have caused product shortages, which have affected its reputation as a leader in the fabric and textiles industry, resulting in a loss of customers.
“After carefully evaluating all available strategic alternatives, we have concluded that initiating a court-supervised sale process is the best way to maximize the value of the business,” the statement said.
What liquidation offers does Joann Fabrics have?
More than 800 Joann stores across the United States are holding liquidations due to closures, allowing customers to enjoy discounts and special prices on all available products. Discounts of up to 75% can be found, although these may vary by location.
Liquidation sales began on February 15 and will continue for several more months. Customers currently have the option to shop in physical stores, online, or through the mobile app. According to an official statement from the company, only remaining inventory will be sold in stores.
Some of the offers available in certain stores include:
- Cotton Canvas: 25% off
- Siser Vinyl: 20% off
- Blizzard Fleece: 30% off
- Spray Paint: 10% off
- Christmas Flowers: 70% off
- Candles and Accessories: 20% off
- Circuit Cutting Materials: 20% off
- Licensed Fabrics: 20% off
- Food Crafting: 10% off
History of Joann Fabrics
In 1943, in Cleveland, Ohio, a group of German immigrants, including Hilda and Berthold Reich, Sigmund and Mathilda Rohrbach, and Justin and Alma Zimmerman, opened the Cleveland Fabric Shop. Over time and after a successful expansion, they decided to rename the business Jo-Ann Fabrics in 1963, combining the names of both families’ daughters: Joan and Jacqueline Ann.
In 1969, Jo-Ann Fabrics took a significant step by becoming a public company and began trading on the U.S. Stock Exchange under the name Fabri-Centers of America, Inc. In 1994, it made a major growth milestone by acquiring Cloth World.
Later, in 1998, Fabri-Centers incorporated House of Fabrics, which had previously been known as Fabricland, Fabric King, and So-Fro Fabrics. In September of that year, the company officially adopted the name Jo-Ann Stores Inc., unifying all its stores under the Jo-Ann Fabrics brand.
What is Chapter 11 of the U.S. Bankruptcy Code?
Chapter 11, commonly known as the “reorganization chapter”, allows businesses, partnerships, or individuals to restructure their assets and liabilities appropriately without having to sell off all their assets.
