Room & Board transfers to 100% employee ownership

Room & Board is celebrating a big change.

The Minneapolis-based modern furniture and home decor retailer has transitioned to a 100% employee stock ownership plan (ESOP), giving its 1,100 employees a financial stake in the company. The move is a testament to the company's dedication to remaining profitable through organic growth while prioritizing the well-being of its staff members, the company said.

Room & Board noted it has a long history of championing staff member well-being. From establishing a company wage of $45,000 for all full-time employees to pioneering same-sex partner benefits more than 30 years ago, the company has consistently demonstrated its pledge to creating a supportive and inclusive workplace environment.

With annual sales exceeding half a billion dollars, Room & Board is known for its dedication to American craftsmanship, with more than 90% of its products made in the U.S. The company has 22 stores across the United States and also delivers its furniture nationally.

"Over the past few years, we have explored every possible option for future ownership — from going public, to private equity, to non-profit ownership,” said John Gabbert, founder and chairman, Room & Board. “Becoming 100% employee-owned was the only option that allowed us to stay true to our business values of respect, accountability, transparency, and collaboration and most importantly, preserve our company culture. My goal has always been to take care of the people who have helped make the company successful and this decision is in the best interest of our staff members, vendor partners, and customers."

The move coincides with Room & Board's recent B-Corp certification. As a Certified B Corporation, Room & Board is steadfast on balancing profit and purpose, and the implementation of the ESOP is yet another step towards creating a more sustainable and equitable future for all.

Overseeing the ESOP implementation is Room & Board's current board of directors, which includes Gabbert, president & COO Bruce Champeau, chief people officer Nancy Greatrix, and CFO Jean Sand. They are tasked with providing strategic direction and financial oversight for the company during this time. The team has also relied on Minneapolis-based Chartwell Financial, who has been instrumental in providing exceptional support and expertise during the transition process.