Room & Board: John Gabbert. A Broken Deal, a Family Rift, and the Birth of a Furniture Giant

John Gabbert discusses his transition from the family-owned Gabbert's furniture store to founding Room & Board, a brand inspired by his visit to IKEA in the 1970s. He felt that American furniture was outdated and wanted to offer modern, affordable options. Gabbert faced significant family tension that ultimately led to a decade-long estrangement after he left Gabbert's to pursue his vision for Room & Board. He started off selling a mix of IKEA-like furniture but later shifted to higher quality, American-made designs that appealed to a more mature customer base. Throughout his journey, Gabbert adhered to a strict philosophy of operating without debt and avoiding outside investment, ultimately turning Room & Board into a successful ESOP (employee stock ownership plan) company. The episode highlights the importance of design, customer relationships, and the value of sticking to one's principles in business.