When a big-box store files for bankruptcy and goes out of business, there’s often an opportunity to buy its products at rock-bottom prices. But scammers are taking advantage of our love of a good deal: The Federal Trade Commission (FTC) is warning consumers about online clearance sales being advertised by fraudsters impersonating Joann Fabric and Crafts.
Joann Fabric and Crafts filed for Chapter 11 bankruptcy (twice) and in February 2025 announced plans to shutter its stores with going-out-of-business sales. On March 5, the business disabled purchases on its website, but scammers have been promoting online clearance sales using ads on social media sites and running away with customer payments.
How the Joann sale scam works
According to the FTC notice, fraudsters are posting ads for an online Joann bankruptcy sale on Facebook, Pinterest, and Nextdoor. When you click the ad, you’ll land on a fake sale site with deals listed and the ability to actually “purchase” inventory items. You’ll even get a receipt.
Unfortunately, that money is going directly into scammers’ pockets—the charge on your credit card will be something other than Joann, and you won’t receive what you ordered.
How to avoid online sale scams
Whether it’s Joann’s going-out-of-business event or another sale with supposedly great deals, use caution before buying. Scams of all kinds prey on emotions based in urgency, so don’t immediately pull out your credit card for limited-time deals or too-good-to-be-true prices.
Don’t click on ads for online sales—always go directly to the company’s website by typing in the URL to verify that a sale is real. In Joann’s case, there is a notice on the website about fraudulent online sales that states, “There are no other authorized Joann shopping sites.”
If you do shop clearance sales, pay with a credit card and keep receipts. Credit cards have more protections than debit cards in cases of fraud and non-delivery of items you paid for—you can dispute charges and receive a refund.
