Stress from economy claims more casualties

The recession's toll on area businesses continues.

And furniture businesses continue to be among the hard-hit in the wake of the housing meltdown and overall economic plunge.

"It hasn't been a pleasant few years since the recession hit and it doesn't seem to show any signs of improving," said Randy Terrio, owner of Furniture North in Nisswa. The store is near Sportland Corners on Upper County Road 77, just off Highway 371 North by the Nisswa slide.

Nisswa Furniture is going out of business. Terrio said there are many reasons behind a store's closing. BUt he said the decision to close the furniture business was based on three main factors. Terrio reported it was a decision that was agonized over for many, many weeks.

The three factors:

• Stressful economic conditions during the last 3.5 years.

• Personal investment of thousands of additional dollars to try to keep the business open.

• There seems to be no end in sight to this recession.

Terrio put his thoughts down on paper.

"The stress has become, at times, more than I can handle," he said of the stressful economic climate. "It has become apparent that we cannot continue to pour additional personal money into the business."

Even when the recession does end, Terrio said he thinks it's doubtful the furniture business will rebound to pre-recession levels - especially for the independent furniture stores. He said the same trend is reflected in the disappearance of other independent retailers - clothing, drug and hardware stores - as consumers buy from large chain stores.

Ashley Furniture HomeStore, which was formerly on Edgewood Drive in Baxter, opened in 2006 and closed in 2008. Fifth Avenue Furniture on northeast Brainerd closed in 2008. KenLor Used Motel Furniture closed in Brainerd and Furnish It from Baxter continues its closing sale. Furniture North closed its Broyhill Home Furnishings Gallery in 2007 after opening about a year earlier in the renovated former County Market building by the East Brainerd Mall.

In 2002, Furniture North announced it was expanding its building, more than doubling its size. The expansion was completed in the spring of 2003.

Furniture North has its roots in Earl's Furniture, which was founded by Earl Svendsen in 1960 in downtown Nisswa. Earl Svendsen and his wife, Sis, operated the store for 10 years. It continued to be a family operation with his son and daughter-in-law, Bill and JoAnn Svendsen. In 1992, Randy and Kathy Terrio purchased the business and relocated it to its current location and changed the name. At its peak, the business employed about 10 people.

"I feel especially sad for our employees that already have lost their jobs and even worse for the employees that we still have that will also soon be out of work," Terrio said. "I will also miss the relationships that I have developed over the years with our various suppliers. I have known many of these companies and sales representatives for 20 or more years."

The plus side of the closing means tremendous deals on furniture, Terrio said. With a short time to close the store, Terrio said major markdowns are being used to liquidate inventory. He's selling the phone system and even the delivery trucks. The plan is to empty the store and warehouse as quickly as possible.

On the negative side, Terrio said his store's closing adds to the trickle down as it means another business won't be there to be a customer for everything from phones and insurance to garbage and snow removal and advertising. Terrio said they'll miss the building, the furniture business, their suppliers, but mostly their customers.

"My entire adult life has been in the furniture business, since high school," Terrio said Thursday. He isn't sure what will come next. "I'm too old to go back to school and too young to retire."

Blue Canoe is closing in Nisswa.

Kathy Johnson bought the business in March of 2008 and opened a month later with business partner Dawn Emstad-Linborg. The store, on Main Street by Rainy Day Bookstore, offered mid-range fine jewelry and gifts.

Johnson said she plans to close the store in February. It was a difficult decision, she said, but came because of a combination of health concerns and the slow economy.

Everything in the store, down to the fixtures, will go.

The business purchase came in the months before the economy went south. Johnson said things were bad in September but there have been ups and downs for sales. Johnson expressed thanks to the people who supported their efforts at the store.

Johnson said: "It's a sad thing because both Dawn and I just love it, but there will be another adventure for us."

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.