.Palace Arts to Close Last Retail Location

After more than 70 years in business, Palace Art & Office supply will close its last retail location in Capitola sometime in early 2022, Director of Operations Mark Rispaud said.

The company will focus on its Palace Business Solutions division, which sells office supplies to businesses, school districts and city municipalities.

“That is a thriving end of the business, and that will continue,” Rispaud said.

The company is making the news public early to give its 20 employees notice and so its customers won’t be surprised by an abrupt closure, he said.

The announcement came after declining sales in an era where consumers are increasingly turning to online retailers.

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“We haven’t seen growth in the last few years,” Rispaud said. “But we’ve seen growth in all our operating expenses. The property values continue to go up, and the cost of taking care of our employees continues to go up, and insurance and maintenance and everything else. But our sales and margins have flat-lined.”

Rispaud gave no definitive date for closure, but said the store at 1501-K 41st Ave. in Capitola will stay open through the 2021 holiday season.


  1. Those of us who value this store, it’s familiar shopping experience and personal service should vow to support them by bringing any and all possible sales to them, at least as an expression of our appreciation. But even moreso, as a hope for our succeeding in making the difference for their being able to stay open. Because just like when tearing down a beautiful old building, they will never come back. And if we don’t protect these things we value in life, no one else will.

  2. Covid was pretty much death nail for many independent retailers. From wage hikes that pandemic drove to employee shortages to huge migration of shoppers to online. There is real issue in California with global companies and employees who make much higher wages compared to small local companies. We need to figure out how to incentivize local businesses to remain. Will take more than just increased patronage. Government needs to provide tax relief for those who are willing to run local businesses.


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