A yarn shop in Spencer will be closing at the end of the year.

TranqWool, which shares the same building as the Green Goat Gallery at 516 S. Salisbury Ave. will close for good Dec. 31. The shop sells local and luxury yarns.

Jenni Pfaff owns TranqWool and the Green Goat Gallery. She said the reason for the decision to close the store is economics: she’s not making enough money to order yarn, and she doesn’t want to go into debt to keep the shop going.

She said she has 30 to 40 loyal customers, but that she hasn’t been able to add enough new ones. She said she’s probably losing potential customers to online yarn stores.

She started the yarn business in 2009 on Mocksville Avenue and moved to the current location two years ago.

She said the decision to close TranqWool was difficult because she has a very good core group of customers.

It was ”wonderful and great,” she said about TranqWool’s five years of business, adding she served a close group of people who enjoyed doing crafts.

The Green Goat Gallery will remain open, Pfaff said, and it will continue to have workshops and clinics focused on creative crafts.

Pfaff said she looks forward to putting her full attention toward the gallery.

Through the end of the year, everything sold in the shop through TranqWool will be 50 percent off retail price. Some items will be 60 percent off.

People with a TranqWool gift certificate need to use it by Dec. 31. The shop will have extended hours through Christmas: Tuesday through Saturday from 10 a.m. to 3 p.m., and in the evening Thursday through Saturday from 6 p.m. to 8 p.m. Sunday hours will be 1 p.m. to 5 p.m.

The shop will be closed Jan. 1 – 5 and will reopen Jan. 6 as the Green Goat Gallery with new hours: Tuesday through Saturday 10 a.m. to 3 p.m., and in the evening Thursday through Saturday from 6 p.m. to 8 p.m.