They had more like 14 stores in California and One at one time in AZ thought.
http://www.globalhobby.com/globalwhere2buy.asp
I think you couple internet sales with the terrible business climate in CA, and seeing the shift to drones, it's no surprise they couldn't sell the business.
The original Hobby Shack in Encino was my go to store for years when I flew at the Basin,