Bankrupt retailer JoAnn Fabrics is preparing to wind down operation and liquidate its merchandise with “going out of business” sales at all of its stores.
"Following a comprehensive sale process and auction, GA Group together with the Prepetition Term Loan Agent, has been selected as the winning bidder to acquire substantially all of JoAnn’s assets,” the company said in a statement.
“In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the company's operations and conduct going-out-of-business sales at all store locations.”
But some JoAnn customers are not happy about one particular sale policy. Because the assets are being acquired by another entity, previously-purchased JoAnn Fabrics gift cards are no longer valid and will not be honored.
“PSA to anyone going to Joann Fabric going out of business sale, if you have store gift cards they will not accept them,” Shelly, who operates a charity, posted on Facebook.
“This is the only place that we have purchased our fabric for Ronnie’s Angels and to date we have made over 500 blankets so, Joann Fabric has received A LOT of my money and gift cards that were donated to the girls from so many of you that have helped us along the way.”
Other customers also took to social media to say they were upset by the move. “Regardless of the fact that you are closing, your business took money and now refuses to give the product in exchange for it,” one person wrote.
In a frequently asked questions post, JoAnn Fabrics disclosed that it would stop accepting gift cards after Feb. 28.
The chain that would become Joann Fabrics was founded in 1943, with a single store in Cleveland. The name was changed to Joann Fabrics in 1963. The company operates 800 stores in 49 states.