Online Sale of Joann Fabrics and Crafts Is a Scam
When a large store declares bankruptcy and goes out of business, it is often possible to purchase its products at rock-bottom prices. But scammers are taking advantage of our love for a good deal: The Federal Trade Commission (FTC) is warning consumers that online sales are being promoted by scammers posing as Joanne Factory and Crafts.
Joann Fabric and Crafts filed for Chapter 11 bankruptcy (twice) and in February 2025 announced plans to close its stores due to the loss of sales. The company disabled shopping on its website on March 5, but scammers are promoting sales online using social media ads and making off with customers’ payments.
How the Joanne Sell Scam Works
According to the Federal Trade Commission notice, scammers are posting online ads about Joan’s bankruptcy on Facebook, Pinterest and Nextdoor. When you click on the ad, you will be taken to a fake sales site with offers listed and the ability to actually “buy” items from inventory. You’ll even receive a receipt.
Unfortunately, this money goes straight into the scammers’ pockets – your credit card charge will be different from Joanne’s and you won’t receive what you ordered.
How to avoid scams when trading online
Whether it’s a Joanne’s demise event or another sale with supposedly great deals, be careful before you buy. Scams of all types rely on emotion based on urgency, so don’t whip out your credit card right away to get limited-time offers or too-good-to-be-true prices.
Don’t click on online sales ads—always go straight to the company’s website by entering the URL to ensure the sale is real. In Joann’s case, the website has a notice about fraudulent online sales that says, “There are no other authorized Joann’s sales sites.”
If you’re running a store sale, pay with a credit card and keep your receipts. Credit cards have more protection than debit cards in cases of fraud and non-delivery of goods you paid for: you can dispute charges and get a refund.