Hancock Fabrics is closing its remaining 185 stores, including the one in Texarkana.
Hancock and its creditors had hoped to attract a bidder that would keep the company running, but were unable to do so.
Great American Group paid $65 million for Hancock's assets and closed 70 underperforming stores in 2007 after Hancock filed for Chapter 11 bankruptcy. Great American will have the final say on which Hancock employees will stay on board to help with the store closings.
The court order states workers will remain Hancock employees, but if Great American decides not to use an employee, it must give Hancock seven days' notice.