Eureka Restoration Hardware to shut i...

Eureka Restoration Hardware to shut its doors

There are 13 comments on the Eureka Times Standard story from Dec 30, 2008, titled Eureka Restoration Hardware to shut its doors. In it, Eureka Times Standard reports that:

Restoration Hardware's original location in Eureka will be shutting its doors on Jan.

Join the discussion below, or Read more at Eureka Times Standard.


Alviso, CA

#1 Dec 30, 2008
In 2007, Restoration Hardware Inc., the Corte Madera home-furnishings chain, agreed to sell itself to a private-equity firm for $267 million. Restoration Hardware had been struggling in the aftermath of the housing slump. In 2006, it earned $3 million on revenue of $713 million; in 2005 it lost $29 million on $582 million in revenue. After this move, Sears got in on the sale and attempted to buy Restoration but that fell thru to and the company was sold to private equity firms Catterton Partners and Tower Three Partners LLC who now have a controlling interest in the company. Gary Friedman, chairman and CEO, also has an equity interest from this sale. Friedman was the former president of Williams-Sonoma.
The stock price for Restoration Hardware has slid continuously since 2006, when it was trading above $9 per share. In 2007 it hovered below $3 per share. Then in June of 2008, Restoration Hardware, Inc. announced that the acquisition of the Company by a group of investors including Catterton Partners and Gary Friedman, the Company's Chairman, President and Chief Executive Officer, had been completed. The terms of the merger agreement, which was approved by shareholders in June of 2008, all of the outstanding shares of common stock of Restoration Hardware, other than those exchanged by certain shareholders participating with Catterton Partners in the transaction, received $4.50 per share in cash. After the purchase, the new owners announced that they would be closing 2 of its 100 stores in the United States and would open up a new store in Canada.

Guess of all the stores to close, the little one where it all started landed on the chopping block because it wasn’t profitable to keep in open to cater to such a small group of folks in Humboldt.

United States

#2 Dec 30, 2008
I dont understand how they could choose to close their flagship original store. Shows they care about their birthplace a lot. I wonder what will go oi that spot or if it still sent empty for years like the brewery/bar building down there.
Middle-o-the-str ea m

Eureka, CA

#3 Dec 30, 2008
Mr. Gordon did a fine job of building a bussiness. Then he sold it to Wall street. Then they went privet again. An illegal move that screwed the investers out of millions. All done on the up and up. "behind closed doors". I hope the worst for RH. Just a bunch of Wall street theives.
666 shopper

United States

#4 Dec 30, 2008
All of the other locations i've seen are larger stores in areas where people have money. I personally don't like paying $15 for a tiny knob that i can get at target for $2. Yes , I am the retail devil.
Meth Sux

Alameda, CA

#5 Dec 31, 2008
Even better, you can probably find your tiny nob at .99 stores.

San Francisco, CA

#6 Dec 31, 2008
Leave his tiny nob out of this!

United States

#7 Dec 31, 2008
Thanks, Anonymous. Actually, the store has been doing very well. My spouse works there - they had a GREAT holiday season. The district manager came up on Monday to let the employees know. The company seems not to have thought much about the actual nuts and bolts of closing it. With only 4 full-time employees, and given that they have consistently been one of the better-performing store, the company will NOT save any money by closing it.

As you probably know, Catterton Partners has had several of its companies go belly-up recently. They have not done a good job running Resto - they tried to roll out a baby/kids' line this year. They've gotten too far away from their strength, IMO. I was a manger for Lechter's Housewares, which did themselves in the same way in the 90's. Unless they bail and sell it to someone who gives a s**t, I don't think they'll make it. Steve Gordon must be having a cow (hope he can get the plaque off the building before they sell that, too).
Trinidad Bay B and B

Mckinleyville, CA

#8 Jan 1, 2009
We will miss this store, and so will our guests. We traded patrons over towels and beautiful fixtures. The staff there always provides my business with some of the best customer service anywhere. I wish them good luck. Of course we'll still get those amazing towels and such online, but it's not the same as a trip to Old Town, browsing, and saying hello to friends.
A very special light is going out in Old Town, and our loss of this little source of history and pride touches more than just one, "upscale" segment of the retail market. It touches our friends and neighbors and their families who work there. Touches those who are inspired by Restoration Hardware design while window shopping. It takes away a source of insight into some amazing customer service concepts for our local businesses.
We will miss this store, and we are thankful for their help with our remodel and their exemplary service over the past three years - good job guys!

San Martin, CA

#9 Jan 1, 2009
Does this justify Arkley still coaxing Home Depot to Eureka? Hope not. I have been loyal to the Eureka Restoration Hardware since they opened. It's a sad day to see them leave. I agree with allimom99 I too hope Gordon can come get that plaque off the wall!!
Arkley Supporter

San Mateo, CA

#10 Jan 1, 2009
Home Depot!!!
Home Depot!!!
Jobs, industry, more building residential housing!!!

Need encouragement for Arkley!!!
Arkley Supporter

San Mateo, CA

#11 Jan 1, 2009
Screw Eureka, build in McKinleyville!!
The Daily Anchor

San Francisco, CA

#12 Feb 9, 2009
Following store closures in Nebraska and here in Eureka, CA, and following 2 rounds of layoffs that have left middle-management overworked and spread too thin to cut any further, sources say Restoration Hardware is planning to consolidate upper management in a last-ditch effort to cut costs.
RH West Jefferson Ohio

United States

#13 Mar 21, 2009
Just to let you all know. RH has laid off a lot of people in Feb and March of 2009. We just dumped second shift, 4 warehouse leads, and a yard driver who just made too much money. It seems it is just about the money. We are busy! Workforce is now too thin...

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