After filing for Chapter 11 protection for the second time, craft retailer Joann has stopped accepting gift cards in order to close all its stores . This has led to a lot of frustration amongst its remaining customers.
After announcing that it was closing all of its stores in the United States on February 28, , a 80-year old fabric and craft retailer, said would no longer accept gift cards. At the time, the company announced that it would end personalized discounts for groups such as teachers, military personnel and healthcare workers.
Customers who missed the window to redeem their gift card balances expressed their disappointment at the move on social media, amid going-out-of-business sales.
“I want you to be aware of how upsetting it is to no longer have the ability to use our gift cards. Your business has taken money, and refuses to exchange it for the product. “Wrong”, one customer wrote .
Another social media user said, “So disappointed you removed gift cards so fast and without much notification.”
Giftcards.com reports that laws governing consumer protection for gift cards vary from state to state. However, when a retailer declares bankrupt, payments are frozen, and creditors including gift card holders must submit claims to get their money back. The court will decide if a retailer can continue to honor a gift card until a certain date.
Joann blames its struggles on a lackluster demand from consumers. After failing to find a purchaser that would keep their stores open, Joann announced last month all of its locations would be closing.
This week, a Joann spokesperson stated that the company “made all possible efforts to pursue a favorable outcome which would keep it in business.”
