As I work at a very friendly quilt shop, I can tell you first hand that no quality fabric is sold to a quilt shop for $2.50. It would be my guess that they are trying to pay off creditors and not make money. We have often heard these kind of stories of gossiping etc in another shop. Between Pam's shop and this board, I find quilters to be the most sharing bunch. Please don't assume that a bad shop is a good representation of quilt shops in general.