The company filed and was bought out of bankruptcy five years ago. The CEO later said the acquisition was "probably the biggest mistake,” he ever made.

Joann initially said it would be closing "approximately 500" of its 850 stores after filing for Chapter 11 bankruptcy. But after the chain was sold to a new ownership group, it said all of its stores would be shutting down.

The policy to no longer accept the gift cards into effect on Feb. 28, which follows soon after the Feb. 25 announcement that every store would be closing.