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The Second Closet was started in September of 1978 by Susanna Knight, who initially accepted clothing in her car. In October, The Second Closet opened in its first location. This store was above the Coast to Coast store on the Northeast corner of Seward and 5th street. In the summer of 1980, Susanna hired Helen Dehning as her first regular employee. Helen worked at The Second Closest until her retirement in 1994.

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By 1984, The Second Closet had moved into a street level location next to Luebbe's Tavern, across the alley from the Sears Catalog store. The space was dark and after a few years, the roof began to leak, so Susanna began looking for yet another location. In 1988, the old Hand Grocery Store, on 3rd street became available, with the help of friends, neighbors and the Seward High Marching band(which happened to be fundraising that year), they moved into it's third location.

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In August of 1989, the Knight family moved to Oregon. Diane Henke purchased The Second Closet. The store remained at the 3rd street location until 1991, when a store front on the 500 block of the Seward street opened up. Diane purchased the building and the Second Closet moved to its fourth and current location at 534 Seward street.

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Veronica Gable purchased the store in 1997 and added a Juniors department. The current owner, Tammy Mackie began working at the store in July of 1999. She then purchased the store from Veronica in December of 2002. She has continued the tradition of providing gently used clothing at affordable prices. In 2014 the Second Closet underwent major renovation. Everything was torn out, the odd massive closet at the middle of the store, the tiny barn board dressing rooms, and the ugly carpet. The new Second Closet is a full service store offering fashion for men, women, juniors and kids. They also carry full lines of scarves, jewelry, purses, Elope hats, Solemate Socks, Spirit Fingerz and Nikibiki camis.