I saddens me when things like this happen. I worked for Joann's for several years at several different locations. I like Joann's. I do purchase a lot of my fabric there -- both for quilting and regular sewing. I refuse to shop at Wal-Mart due to a very bad experience regarding a perscription. I do go to LQS's but with my budget I don't go very often and when I do -- well lets just say they would not get rich off of me. I just can't afford them. I know a number of quilters that have bought from their LQS and have gotten bad fabric there as well. It happens. Its not the LQS's fault and it's not Joann's fault either. Stuff happens. For me, Joann's has good and bad quality. I
avoid the bad by just feeling them. It starts way back at the manufacturer. They can receive bad stuff and may not realize this until after the fact.
I worked for another fabric store in this area years ago and what the owner would do is buy these huge package deal things from a manufacturer sight unseen and boy do we get some really BAD stuff. Some was so bad that was good enough for rags and that was about it. She would put a huge pice on it and was amazing how many people bought it and come back within a week (or less) and what either replacement fabric or their money back.
I guess what I'm trying to say is that it happensat the LQS's as well at Joann's.