SANDPOINT — Another longtime downtown retailer is succumbing to a  struggling economy and perceptions that buying locally is costlier compared to big box stores or online vendors.

The Inkwell is drying up.

“It’s tough,” said Inkwell general manager Debbie Meaux, who likens the closure of the office supply business to a death in the family.

The Inkwell has been a downtown presence for the last 35 years, but will be shutting its doors imminently. Remaining stock is currently being liquidated.

“I would chalk it up to the economy and that it’s a very difficult climate for small businesses to operate,” said Meaux, who hopes Inkwell customers will take their business to Vanderford’s.

At one time, the Inkwell had locations in Sandpoint, Coeur d’Alene, Lewiston and Spokane, Wash. The latter two locations were shuttered and Sandpoint and Coeur d’Alene served as distribution points.

It employed as many as 80 people in its heyday. Twelve employees, most of whom are longtime Inkwell workers, will be laid off with the closure of the Sandpoint and Coeur d’Alene stores.

Meaux said there are no immediate plans to fill the Inkwell’s space in the Bonner Building at the corner of Second Avenue and Church Street.

“It’s going to be another empty space downtown,” she said.

In the beginning the Inkwell was owned by Pete Thompson. He sold it to Ed and Marva Miller, who opened a store in the McFarland Building on Main Street. The business moved to corner of First and Pine about 20 years ago, but the building was destroyed by a fire that knocked out power to the whole city.

“We had just sent out our grand opening invitations and it burned to the ground,” said Meaux, who began working for the company in 1978.

The business moved back to the McFarland Building briefly and Meaux said the outpouring of support was tremendous. People donated display cases and paid on accounts they weren’t even sure had a balance.

“That’s how people in Sandpoint work. It was amazing,” said Meaux.

The Inkwell gave back by donating to local education and civic causes and offering discounts to teachers.

The business is currently owned by John McGruder and Jerry Thompson.

Meaux’s four boys grew up in the Inkwell, as did other kids whose parents had to work to make ends meet.

Meaux said the Inkwell weathered the Internet revolution by matching prices with online retailers and national chains such as Staples.

“What people don’t realizes that small businesses are competitive with big businesses — we have to be,” she said.

But perception overshadowed reality and then the economy tanked and affordable lending opportunities grew scarce. Meaux said a loan could have seen the business through the recession, but the only willing lenders commanded interest rates as high as 18 percent.

“We did not have enough surplus to survive the recession,” she said.