A picture frame and hanger combination features a reel for winding and unwinding of the cord, a locking mechanism to lock the cord in any of a number of partially unwound states of different length, and a frame bordering a picture opening for receiving a picture in a position facing outward from the picture opening to a front side of the frame. The frame has a hollow cavity positioned and sized to accommodate the reel and locking mechanism, which may be combined into a single unit, in positions at least partially recessed in the frame and concealed from the front side thereof. The recessing of the reel into the frame avoids bulky installation on the rear of the frame that may otherwise prevent the frame from lying closely against the wall or other upright surface behind the picture frame.