Final part of Beatties' original retail empire set to close

But now with the announcement Coats Crafts UK will close, the final thread to the past has come undone.

The business, a concession in the House of Fraser in Victoria Street has struggled in recent years and will close in November.

Manager Kathy Rowe, aged 50, said: "Customers have talked about starting a petition but I don't think anything will save it."

The concession, which employs five people, is owned by industrial thread manufacturer Coats Crafts UK, which is also closing similar outlets at House of Fraser stores in Birmingham, Sutton Coldfield, Solihull, Worcester, Plymouth and Edinburgh.

The business is owned by an American firm, which is is pulling out of the UK wholesale.

Bosses said the decision was not influenced by the EU referendum and that an employee consultation process had started before the vote was held.

The last day of trading in Wolverhampton will be November 6, although most operations will have ceased by October.

Anna Mitchell, managing director of Coats Crafts UK, said: "Coats is proud of its UK heritage and long association supporting UK-based crafters and would like to thank all of our employees and customers, past and present, for their loyalty to our products and company."

The news has come as a huge blow for regular customers of the popular haberdashery.

The department increased its floor space by more than a third under Kathy Rowe's management as she built up the business and started twice-weekly knit-and-chat sessions, which drew between 12 to 20 crafters a time.

Mrs Rowe, who has worked in the department for 16 years, said: "It's a shame, and it's so sad for House of Fraser as this building has had a haberdashery since it started.

"Customers are gutted, they can't get their heads round it. People have written in but, unfortunately, it's too late now."

A closing down sale has been launched, with everything from fabric, knitting wool, ribbon, embroidery silks, zips, buttons and other craft items included. Almost everything is going for half-price.

The company said customers will be able to source well-known brands and products – such as Rowan, Patons, Milward, Anchor and Red Heart – from other suppliers.

James Beattie set up his haberdashery store at 77 Victoria Street – across the road from the existing building – with £300 capital in 1877.

The Victoria Drapery Supply Stores employed two junior assistants, with counters and displays prepared before breakfast, and the doors not closing until 8pm during the week, and 10pm Saturdays.