[1] Expanding from the original operation, the company opened a group of downtown stores in county seat towns.

The merchandise was purchased and distributed to all of the Watson's stores from the centralized warehouse located at the corporate offices in Knoxville.

The company hit hard times in the late 1980s and eventually filed for Chapter 11 Bankruptcy in February 1992 when they were unable to renew bank financing.

Watson's was purchased in June 1998 by Peebles, a then privately held retailer based in South Hill, Virginia.

The former Watson's Knoxville Distribution Center at 200 Hayfield Road continues to serve as one of two warehouses for the Peebles chain.