Joann Fabrics filed Chapter 11 bankruptcy in 2023. Customers holding gift cards are now creditors with claims. Here's how to file and what you can expect.
Gift Card Claims
When a retailer files bankruptcy while you hold an outstanding gift card, you become a creditor of the bankruptcy estate. Your gift card balance is a general unsecured claim.
Filing a Gift Card Claim
- Locate your gift card and its balance (check your receipt or Joann's website)
- File a Proof of Claim with the bankruptcy court before the deadline
- Include your gift card number and purchase/issuance information
Recovery Prospects
Joann's bankruptcy plan projects modest creditor recovery (10–20% for unsecured claims, which includes gift card claims). In some cases, retailers honor gift cards post-bankruptcy as a customer goodwill gesture, but don't rely on this.
Timeline
Joann is currently restructuring and operating through bankruptcy. The company is expected to emerge from bankruptcy in 2026–2027. Gift card distributions should follow confirmation of a final plan.
Gift card claims are complex and state consumer protection laws may provide additional rights. Consult a local attorney if you have a large gift card balance at stake.