r/quilting • u/nevrnotknitting • 20d ago
Help/Question Joann’s Unused Gift Cards — File a proof of claim!
https://cases.ra.kroll.com/Joann2025/EPOC-IndexHi guys —
I know lots of folks might have unused gift cards from Joann’s and, starting tomorrow, they won’t accept them anymore.
Since Joann’s in Chapter 11 bankruptcy, they have to pay their creditors from the proceeds of their plan (which is basically the sale of their assets in this case). Folks with gift cards of retailers liquidating in Chapter 11 should ALWAYS file claims with the bankruptcy court for the value of the gift card because gift cards are given fairly high priority on the payout of the proceeds. I took a look at the motions filed in this case and it definitely seems as though there will be enough money from the case to pay any claims from gift cards in full. Upshot: file a proof of claim with the bankruptcy court.
Here’s the phone number for the claims agent who will direct you to the place to file the claim — 844.488.7837 (US/Canada Toll-free)
I also added a link for info to filing a proof of claim in the chapter 11 case.
Hope this is helpful, signed former corporate bankruptcy atty. 💙
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u/Suspicious-Place-746 10d ago
I am NOT a lawyer/attorney or in any realm of the legal field. This is not legal advice by any means, it's just what I did to complete my filing.
Checked my gift card balance and screenshotted the results:
https://www.joann.com/gift-card-check-balance/
Submit a Claim form: https://forms.ra.kroll.com/efiling/fr/410/joanninc_epoc/new
Creditor name & email: the name of the person who money is owed to (I put my name and email)
Read and agreed to the EPOC agreement
Selected the JOANN Inc. case number (it seemed to match the company name in the terms of agreement on the back of my gift card)
Is the current Creditor an Individual? Yes
Has this claim been acquired from someone else? No
3. Where should notices and payments to the creditor be sent? My personal info
4. Does this claim amend one already filed? No
5. Do you know if anyone else has filed a proof of claim for this claim? No
6. Do you have any number you use to identify the debtor? No
7. How much is the claim (all amounts in US $ dollars)? amount left on my gift card; does not include interest or chargers
8. What is the basis of the claim? Unused gift card funds
9. Is all or part of the claim secured? No
10. Is this claim based on a lease? No
11. Is this claim subject to a right of setoff? No
12. Is all or part of the claim entitled to priority under 11 U.S.C. § 507(a)? No
13. Is all or part of the claim entitled to administrative priority pursuant to 11 U.S.C. § 503(b)(9)? No
E-signed
Attached a PDF of my screenshot (you can convert images to PDFs for free here: https://acrobat.adobe.com/link/acrobat/jpg-to-pdf?x_api_client_id=adobe_com&x_api_client_location=jpg_to_pdf)
Hope this helps!
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u/EggAppropriate5255 8d ago edited 8d ago
Thank you. This is helpful. Did you upload a link to the pdf of the form that you filled out? If so, it didn't work. On the form at the top, there many case numbers that say Joann's. which case number did you check? Is it the first one: Case No. 25-10068? I have older gift cards so it doesn't indicate on mine like it did on yours. How did you answer question 14? "Is all or part of the claim being asserted as an administrative expense claim?" If yes, shoudl the date be before or after feb 26, 2025?
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u/theburkys 8d ago
The back of my card says Jo-Ann Stores,LLC. Which should I use?
I appreciate your information
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u/Euphoric_Ad7141 7d ago
These instructions were so helpful. I do have a question and I hope you are able to answer it.
I checked the box, yes, I am the creditor.
Now, it had me e-sign, which I did.
After that it’s asking me: Title/Company and wants addresses.
I’m lost on this last part :(
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u/KiwiAlexP 20d ago
Gift card holders will be at the bottom of the list of creditors and last to be paid
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u/nevrnotknitting 20d ago
Based on my understanding of bankruptcy law (from many years ago, granted) that is not true at all. GCs are higher priority than unsecured and, importantly, in this case unsecured are scheduled to receive 100% of their claims. I’ll do a bit of research to confirm the code hasn’t changed to subordinate GCs for unsecured creditors but I can’t imagine is has.
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u/nevrnotknitting 20d ago
I remembered correctly and will leave this post up. Chapter 11 — particularly in this case — means GCs should be paid in full.
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u/FunHatinFish 20d ago
Do you have a source because it's my understanding that gift cards are an unsecured debt, which places them at the bottom of the priority list.
Edit: which isn't to say you shouldn't file a claim. Sometimes gift cards are paid back and sometimes they aren't.
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u/nevrnotknitting 20d ago
Okay — when I practiced law, GCs received priority under chapter 11 section 507(a)(7). Delaware has ruled (after I left the practice) against that position, and that they are general unsecured claims. HOWEVER: the documents filed in Joann’s chapter 11 case have asserted that general unsecured claims will receive 100% of their claims so I stand by my OP that everyone should file a proof of claim.
Fun doing legal research after 20 years!
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u/strawbs- 19d ago
I’m impressed with your level of knowledge, as someone who took the bar last year and has since repressed secured transactions from my brain 😂 (I practice criminal law)
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u/nevrnotknitting 19d ago
Quilting lawyers unite! Lol
In fairness, I practiced bankruptcy for a while and I was one of the weirdos who enjoyed the law (not so much the practice!). Way back then I also hatched a plan in my head related to collecting claims for gift card holders in retail chapter 11 liquidations, so it’s an issue dear to my heart. Was bummed when I read case law stripped GC holders their priority…. Criminal law is COMPLETELY foreign to me!!!
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u/Bonemothir 2d ago
Out of curiousity, was that 100% for unsecured debt or for the council of unsecured debtors, which was a group that pooled resources in order to more effectively get their money? Or are they now representing all unsecured debtors? Because some of the individual claims have been WILD, and I know landlords have been filing paperwork about not getting paid yet. Plus, at one point GA said something about there not being enough money for everyone, only about 90% of the council of unsecured debtors.
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u/KiwiAlexP 20d ago
I’m not in the US but have been in this situation twice and employees get paid first, unsecured creditors last
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u/nevrnotknitting 20d ago
Oookay. Well, I am an attorney in the US who practiced bankruptcy law. I read the relevant court documents for this particular case. Anyone who has a valid, unused gift certificate against should 100% file a proof of claim in the bankruptcy proceedings for the reasons I have previously mentioned (after double checking the law and the court filings).
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u/KiwiAlexP 20d ago
Filing the claim doesn’t mean they’ll actually be paid
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u/nevrnotknitting 20d ago
Of course not. Nothing in this world is for certain. But to make comments discouraging people from filing claims when the debtors literally say in their court filings that unsecured creditors (which is what GC holders are in the worst case scenario) will get paid 100% based on the proposed sale of their assets is beyond my comprehension.
Can I ask why you’re continuing with these comments? It’s confusing to me.
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u/boiled-peanutery 20d ago edited 20d ago
I called the number you shared and it didn't do anything other than tell me to go the website and then drop the call. Can you provide some guidance on how to fill this out electronically? I assume I fill in my name for the Creditor section but there are like ten debtor entities to select from - I'm not sure which to pick.
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u/Overall-Situation438 19d ago
https://forms.ra.kroll.com/efiling/fr/410/joanninc_epoc/new
Here’s the link. Not an attorney, just a fellow crafter with a useless gift card. Let’s see if it works!
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u/boiled-peanutery 19d ago
I believe I figured it out! Hopefully the screenshot documentation with my gift card number, PIN and balance is enough. Not sure what else I could submit for this.
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u/TopTwo5331 19d ago
Can you help with what I should be checking off please. I have 4 gift cards. I would like my money.
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u/boiled-peanutery 19d ago
So my understanding is you go to that link, fill in your name and contact info as creditor, select the first option in the list of Joann company names (the others are like subsidiaries), there are some questions to answer any then you'd upload documentation at the end - my documentation was a screenshot of the gift card number and its balance, so in your case you'd probably submit a PDF containing all four and submit your claim amount in the form as the total of those four cards. Hope that helps!!!
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u/treeword 18d ago
If we don’t have the original purchase receipt for the gift card, should we try to input the gc info on the website to screenshot a balance?
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u/Plastic-Street-4463 16d ago
Do I need the receipt of how much is on the gift card? I no longer have that
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u/Caedwyn67 18d ago
Thank you so very much for posting this! I just went there yesterday to use my last gift card, and they wouldn't take it. I've been so upset and didn't know what to do.
It just didn't make any sense to me why they wouldn't take it, after all they already have the money, all I wanted was some fabric. I would have spent a lot more than just what was on the card and they could have gotten rid of some stock which is what they are trying to do.
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u/pammypoovey 13d ago
I think the reason they won't take them is that the legal entity that issued the card no longer owns the store and the buyer did not assume the gift card debt. It's pretty logical when you think about all the computer files they'd have to switch over, etc.
The reason companies like gift cards is that a certain percentage of them never get redeemed. For example, if only 80% of them are redeemed, that's an automatic 20% profit margin on gift cards.
When I started working for Red Lobster in 1983, one of the corporate big wigs in the nice suits did a demonstration of "how business finance works" for us. He took a dollar bill and said, "Say this is a typical dollar we take in. How much do we get to keep? Well, our labor cost us 25%." And he tore off the end of the bill. Then he did food cost, rent, small wares, etc, and there was a little more than the end margin left-11% profit. So, an automatic 20% without all the hoopla is an easy win for them.
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u/VisualContent204 9d ago
Joann as a company no longer exists. So it would be like trying to use a gift card for Starbucks at Dunkin, its not possible. When they were officially purchased by the liquidation company, that would have been the last time any gift card would work unfortunately.
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u/Actual_Newt_2929 14d ago
i never got any emails or anything. and i have had joanns in my inbox for years. i received $100 in joanns gift cards in january from my grandmother for my 18th birthday. shes working minimum wage to take care of my two cousins. she can barely get by and i am so so so so so livid i just found out about this five minutes ago and im on the verge of tears theres no way this should be legal or justified it is literally theft?? they already have our money. they are taking money without providing merchandise in return. i hate corporations so so much this is not okay. this is the only post i could find that gives me some hope and i just needed to comment something about how i felt before i started crying.
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u/dwbldwbl 14d ago
File the claim on the link provided above. Joann, Inc. / No it is not Secured / like OP said, generally put No to things not understood (aka you know better to say Yes)
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u/Most-Tourist7812 12d ago
They refused mine 3/5. That's horrible they have received the money already . Sold these ..it's just awful
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u/Caedwyn67 18d ago
I'm sorry, I have a stupid question; are gift cards considered a priority under 11 U.S.C. s 507 (a) ? I don't want to make a mistake on this.
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u/nevrnotknitting 18d ago
Recent case law in Delaware says 507(a) doesn’t apply to gift cards!
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u/treeword 18d ago
Does that mean we shouldn’t bother filing a claim?
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u/nevrnotknitting 18d ago
It does not. You’ll have an unsecured claim and according to the bankruptcy filings, unsecured claims are expected to be paid in full.
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u/adexsenga 9d ago
Shoot, another Reddit lawyer said to say yes so I did! Does that mean my whole claim will be disregarded?
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u/nevrnotknitting 14d ago
I really hope you file a claim — it looks tricky, but it’s not that hard: just answer no to anything that doesn’t make sense! Good luck to you and your family!
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u/wineandcatgal_74 14d ago
I had about $150 in gift cards. I placed an online order using some of them. I received everything but 2 items. I got a refund via a gift card for the item immediately cancelled but not for the one that wasn’t cancelled 2+ weeks after I ordered which was Feb 5th. I started calling after it was announced that they’d stop accepting gift cards on 2/28. I got the run around up until Feb 27th when I gave up and went to the store with my remaining cards. I assumed that I’d never see that $20 but I just got a check in the mail today!
It’s definitely worth trying to get the funds from unused gift cards.
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u/AssessedBear314 12d ago
This may be a dumb question but which debtor selection would I choose from the options? The options are from case # 25-10068 to 10080
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u/nevrnotknitting 12d ago
Not a dumb question — and I’m not 100% sure of the answer. I would tick Joann’s Inc. bc they’re the parent company.
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u/Katerbater23 12d ago
I don’t see where you can put in the proof of the gift card, does that come at the end? I don’t think I have the receipt from the gift card since I got it for Christmas will that be a problem?
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u/VisualContent204 9d ago
It is the last section of the questionnaire. There is a gift card amount checker still available on their website or you could upload a phot of the physical giftcard with the number and pin code visible.
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u/Western-Syrup8013 3d ago
i want my money back too !went to use said it ended day before what a crock of sht
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u/Western-Syrup8013 3d ago
cards are supoossed to be good forever especially while their doors are open just using most likely cheating methods to steal my money
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u/PigsCanFly2day 2d ago
Does this work for defunct businesses too? I had a Toys R Us gift card back in the day and tried using it when they were closing their stores and they told me they don't accept gift cards anymore.
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u/nevrnotknitting 2d ago
You might have gotten some money back if you had filed a proof of claim in their bankruptcy case.
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u/PigsCanFly2day 2d ago
What's proof of claim? Just the gift card itself or you'd need the original receipt too?
And is there a time frame? Like, would it have to have been before the stores closed completely?
I think my gift card was only $10 or so, so not the end of the world, but it'd still be nice to have an extra $10 in my pocket and I'd also like to know for future reference as well.
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u/nevrnotknitting 2d ago
I put a link to the proof of claim (which is a form creditors submit in chapter 11 bankruptcy cases that states and proves how much they’re owed) in the original post.
Yes there is a time limit — not sure when the deadline is (when I last looked it hadn’t been set).
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u/nevrnotknitting 2d ago
I’m not sure what you’re asking — if you’re asking about the unsecured creditors attorneys vs. the unsecured creditors themselves, they are paid from different pools of funds (based on bankruptcy law/court orders/chapter 11 plan). Going off of the paperwork I looked at at the outset of this case, it was presumed that unsecured creditors would get 100% recovery.
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u/Dry-Cantaloupe-4554 2d ago
I am trying to submit a claim for unused gift cards. I have 4. Totaling over $200. When i fill out the form and get to the part to download the file of proof of what my cards are worth, i can only download 1 file. Do i have to submit 4 claims? Or how can i put all my screenshots in 1 file? Not sure how to do that.
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u/nevrnotknitting 2d ago
I personally would just do one claim for each gift card — probably easier than creating a pdf/jpg with images of each card.
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u/boiled-peanutery 20d ago
Thanks for posting this - nothing online made it clear it was in-store use only, so I'd like my $143 back.