Joann, the beloved arts and crafts retailer, has stunned its loyal customers by shutting down all 800+ stores across the U.S. and rendering its gift cards worthless.
After filing for bankruptcy in January 2025 and entering a liquidation phase, the chain initially planned to close over 500 locations.
However, a February announcement revealed that every store would shutter following GA Group’s acquisition of their assets.
As going-out-of-business sales roll out with discounts up to 40%, the company dropped another bombshell: gift cards are no longer accepted as of February 28, 2025.
This move has sparked outrage among shoppers, especially those left holding unusable cards.
Here’s everything you need to know about its closure, the gift card controversy, and where Pittsburgh-area crafters can turn next.
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Stores Closing : Joann’s Bankruptcy and Liquidation: What Happened?
It is headquartered in Hudson, Ohio, filed for Chapter 11 bankruptcy for the second time in a year in January 2025.
Initially, the company aimed to restructure by closing over 500 of its 800+ U.S. stores while keeping the rest operational.
However, those plans unraveled when retail liquidator GA Group, alongside Joann’s term lenders, won the bid for the company’s remaining assets on February 22, 2025.
This acquisition sealed the fate of every Joann location, triggering a nationwide liquidation process.
The company expressed regret in a statement: “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.
We are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on all our stakeholders.”
Despite these efforts, Joann’s could not avoid total closure, leaving employees, customers, and gift card holders in a tough spot.
Going-out-of-business sales kicked off on February 15, 2025, with initial discounts of up to 40% on in-store inventory.
These sales are expected to continue through May 2025 or until supplies run out, giving shoppers a final chance to stock up on fabrics, yarns, and craft supplies.
However, one major catch has turned this clearance event bittersweet: gift cards are no longer valid
Gift Card Controversy: Why Customers Are Furious
On February 25, 2025, Joann announced that all stores would close, followed by a policy shift on February 28 banning the use of its gift cards.
This decision has ignited a firestorm of backlash from customers who feel cheated after spending money on cards they can no longer redeem.
Social media platforms like Instagram and X have become outlets for frustrated shoppers to vent their anger.
One Instagram user commented on Joann’s March 3 post promoting the clearance sales: “I just want you to know how incredibly upsetting it is that you cut off our ability to use gift cards.
Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it.
Wrong.” Another X user lamented, “Missed my chance to use my Joann gift card. $40 down the drain. Thanks for nothing.”
The timing of the gift card cutoff—mere days after the full closure announcement—has fueled accusations of poor communication and unfair treatment.
Shoppers argue that Joann should have provided more notice or honored gift cards during the liquidation sales, especially since the company accepted payment for them in good faith.
State laws on gift cards vary, with some, like Maine’s, prohibiting expiration dates outright.
Maine’s law states, “A period of limitation may not be imposed on the owner’s right to redeem the gift obligation.”
This has left gift card holders in such states particularly incensed, questioning whether Joann’s policy violates local regulations.
During bankruptcy, however, courts often override state laws, allowing companies to set liquidation terms—leaving customers with little recourse.
USA TODAY has reached out to Joann for clarification, but no response has been provided as of March 13, 2025.
How Bankruptcy Law Impacts Gift Cards
When a retailer files for bankruptcy, gift card policies fall under the jurisdiction of the bankruptcy court, not state laws.
In Joann’s case, the court-approved liquidation process permitted the company to stop accepting gift cards as of February 28, 2025.
This is a common practice in retail bankruptcies, as companies prioritize paying off creditors over honoring customer vouchers.
While legal, it’s a bitter pill for shoppers who see gift cards as prepaid promises for goods or services.
For Joann customers, this means their cards are now essentially worthless unless the company reverses its stance—an unlikely scenario given the liquidation timeline.
Experts advise affected shoppers to file claims as unsecured creditors in the bankruptcy proceedings, though payouts are rare and typically minimal.
The lack of transparency and short notice have only deepened the sense of betrayal among Joann’s once-loyal fanbase.
Going-Out-of-Business Sales: What to Expect
Joann’s liquidation sales began on February 15, 2025, offering discounts starting at 40% off in-store merchandise.
The company emphasized that only on-site inventory is included, meaning online orders and special requests are off the table.
Discounts are expected to deepen as the sales progress, potentially reaching 70-90% off as stores near their final days.
However, with gift cards off-limits, shoppers must rely on cash, credit, or debit to take advantage of these deals.
The sales are projected to last until the end of May 2025, though popular items like fabrics, sewing supplies, and seasonal crafts may sell out sooner.
Pittsburgh-area locations—about a dozen in total—are among those participating, giving local crafters a fleeting window to grab bargains before the doors close for good.
Pittsburgh’s Crafting Alternatives: Where to Shop Next
While Joann’s closure is a blow to craft enthusiasts, Pittsburghers have a vibrant array of local options to fill the void.
These independent shops offer everything from fabrics and yarns to paints and quirky supplies, often with a personal touch Joann couldn’t match.
Here’s a roundup of top alternatives in the Steel City:
- Artist & Craftsman Supply
Location: 5603 Hobart St., Squirrel Hill
Offerings: Paints, sketchbooks, scrapbooks, sculpting clay, and more.
Why Visit: A go-to for artists and DIYers seeking high-quality supplies.
2. Firecracker Fabrics
Location: 1745 Chislett St., Morningside
Offerings: Apparel fabrics, quilting materials, threads, and embroidery kits.
Why Visit: Perfect for sewers and quilters looking for unique fibers.
3. Center for Creative Reuse
Location: 214 N Lexington St., Point Breeze
Offerings: Donated craft supplies, doll heads, custom kits, and eclectic finds.
Why Visit: Sustainable crafting with a treasure-hunt vibe.
4. Moon & Yarn Craft Room
Location: 605 Lincoln Ave., Bellevue
Offerings: Yarns, weaving tools, spinning supplies, and knitting essentials.
Why Visit: A cozy haven for fiber artists.
5. Quilters Depot
Location: 3370 Library Road, Castle Shannon
Offerings: Fabrics, knitting supplies, quilting notions, and crochet tools.
Why Visit: A quilter’s paradise with expert advice.
6. Dyed in the Wool
Location: 3458 Babcock Blvd., Ross Township
Offerings: Natural and synthetic yarns from women-owned businesses.
Why Visit: Ethical sourcing meets vibrant colors.
7. Blick Art Materials
Location: 5534 Walnut St., Shadyside
Offerings: Paints, drawing tools, ceramics, and framing supplies.
Why Visit: A one-stop shop for all artistic pursuits.
8. Wildchild Stitches
Location: 2729 Murray Ave., Squirrel Hill
Offerings: Fibers for knitting, cross-stitch, and macramé.
Why Visit: Bold, high-quality materials for standout projects.
9. McWalker Yarns
Location: 303 Grant Ave., Millvale
Offerings: Boutique yarns and knitting accessories.
Why Visit: Small-batch finds for unique creations.
10. Sewickley Yarns
Location: 435 Beaver St., Sewickley
Offerings: Premium yarns and knitting supplies.
Why Visit: A charming spot for yarn enthusiasts.
These local gems not only replace Joann’s but often provide better quality, curated selections, and community support.
Crafters are encouraged to explore them after snagging Joann’s clearance deals.
Why Joann’s Closure Hurts—and How to Move Forward
Joann’s exit from the retail landscape is a gut punch for fabric and craft lovers nationwide. For decades, it was a staple for sewers, quilters, knitters, and DIYers, offering affordable supplies under one roof.
The abrupt end—coupled with the gift card debacle—has left many feeling abandoned.
In Pittsburgh, the loss of roughly a dozen stores stings, but the region’s thriving local craft scene offers hope.
If you’re a Joann fan, act fast to hit the liquidation sales before stock vanishes.
Then, pivot to these independent retailers for your future projects.
Supporting small businesses not only keeps the crafting spirit alive but also ensures your money stays local.
Have a Joann gift card? File a claim in the bankruptcy case, though don’t hold your breath for a refund.
A Crafting Community in Transition
Joann’s closure marks the end of an era, but it’s not the end of crafting.
As the retailer winds down through May 2025, its gift card policy has left a sour taste, driving home the risks of corporate bankruptcy for consumers.
Still, Pittsburgh’s craft community is resilient, with local shops ready to step up.
Stock up on Joann’s discounts now, then rediscover the joy of crafting through these neighborhood favorites.
Share your thoughts—or your gift card woes—in the comments below!
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