I don't believe they are going out of business (no signs or anything) but I didn't really ask.
I've seen them in the store a couple times for 24.99 because I stop in there every now and then to to see if they have anything new in their small poker section. I was going to swing by one of their other stores in area to see if they had a mixed set (1,5,10,25,100) on sale for 9.97. I'll let you know what I find.
As for what is Spencer's, check out their website:
http://www.spencergifts.com . Its pretty basic as they don't have an online store yet but they do have a store locator and phone numbers.
Its definitely not a store you want the little kids wandering around in unsupervised as they do carry a lot "adult" oriented goods, nothing hardcore that I'm aware of though.