Fans of the once-popular crafts shop are questioning an unexpected approach being employed during the sales as Joann Fabrics prepares to liquidate hundreds of stores nationwide. All locations have started selling off inventory at deeply discounted pricing.
In its last days of operation, the company announced on social media that it was going out of business and offering 40% and 50% off all products.
Joann, touting itself as "the nation’s category leader in sewing and fabrics with one of the largest arts and crafts offerings," recently filed for Chapter 11 bankruptcy and revealed intentions to liquidate hundreds of stores. This action follows their announcement. Last month, following a successful auction, all Joann stores started their closing discounts.
As a result of an exhaustive bidding process, GA Group and the Prepetition Term Loan Agent have been chosen as the successful purchasers of nearly all of JOANN's assets. Joann stated that the successful bidders intend to commence winding down the Company's operations and hold going-out-of-business sales at all shop locations by this agreement, pending approval of the transaction by the Bankruptcy Court. "The management team, board of directors, advisers, and legal partners of JOANN did all in their power to seek a better solution that would allow the company to continue operations. To achieve a smooth wind-down of operations that minimizes the impact on all our stakeholders, we are dedicated to working constructively with the winning bidder. After more than 80 years in business, we are eternally grateful to our loyal customers, communities, and Team Members for their unfaltering support.
However, some customers were taken aback by the policy change that prohibits gift cards, even while stores are still open for the company's last promotions.
Please know how deeply disturbed I am that you disabled our gift card functionality. Your company accepted payment but will not provide the goods promised in exchange, regardless of whether you are shutting down or not. Somebody commented, "Wrong," on the chain's Facebook post.
"So upset you cut off gift cards so quickly and with little notification," a different person said.
"Silently refusing Gift cards all of the sudden while closing permanently is DISGUSTING behavior," a user said.
As the shutdown announcements progressed, Joann's disclosed in a frequently asked questions page that it would cease taking gift cards after February 28. Previous messaging had indicated that gift cards could not be used online and could only be redeemed in-store. You couldn't return anything to the business anymore.
It was ridiculous and unfair to give customers thirteen days to redeem a gift card. "I would have spent more than the gift card balance if I hadn't gone out and spent zero dollars," one customer remarked.
The website of the company states that the chain "can no longer fulfill online orders" because of "high demand." Store closures have not been officially announced as of this writing.
Store closures have been announced by several large chains, adding to the current wave of closures.
Up to 1,200 "underperforming stores"—including a few in the Chicago region—may be shuttered by 2027, according to Walgreens' announcement. There will be two store closures in the Chicago region among the twenty-seven that Kohl's has scheduled for April. In its final days of operation, the once-popular party supply and balloon company Party City is shuttering hundreds of locations.
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