I don't think it was a bad location, there are a number of good quilt shops around Houston that aren't in the best locations or near freeways. If you have a GOOD shop, quilters will find you!! There are lots of quilters, bees & a guild in the area plus the Sugar Land-Missouri City area is more than 200,000 in population - they should NOT have been lacking for customers ...
IMO it was the employees they had the first 2 years, that didn't help their chances at all. The owner finally replaced the staff last year, but too little, too late ... All the quilters I know decided to shop elsewhere. I live less than 2 mi away, but it was last on my list of places to go. It wasn't really a quilt shop, more of a sewing store with emphasis on machines & software; quilting fabric was in the back. Didn't offer a good choice of quilting books or patterns either. They did have nice batiks though