Broad Street Furnishings to close

Broad Street Furnishings, the largest business in downtown Nevada City, is planning to close its doors after more than 30 years - the latest casualty of the economic downturn.

Owner Lionel Holman, who has owned the store for just 21Ú2 years, said he had no choice but to shut down.

"The decision to close the store has been a difficult one," said Holman. "The drastic slowdown in the housing market has directly affected the demand for furniture, and now the most sensible course of action is for us to close."

Flyers and later bright red, blue and yellow signs on the store's display windows said Monday that the store at 121 Broad St. would be closed until Thursday when a going-out-of-business or liquidation sale will start.

Longtime City Councilman Steve Cottrell was stunned when he saw the notices announcing the store's imminent closure.

"In addition to being a big loss as far as sales tax goes, it's never good news when a major retailer closes its doors," he said. "It affects foot traffic on Broad Street and the economic welfare of the entire downtown shopping area."

Nevada City does not release information on how much a specific business collects in sales tax, but Broad Street Furnishings sells middle- and high-end furniture and to a regional audience, according to Holman.

City Councilman and businessman David McKay said he had no doubt the business has made significant contributions to the city's revenue stream.

"I would say outside of some of our more popular restaurants, it was certainly one of our largest contributors in the downtown area," he said. "This is sad to see."

Broad Street Furnishings was started in 1977 in the old post office building on Commercial Street. The business grew over the years under the stewardship of Larry Doyle, Patrick Millard and Jeanne Millard.

The business later relocated into its current location, a two-story, nearly 30,000-square-foot building that helps anchor the south end of downtown. In November 2005, Lionel and his wife, Joan, bought the business from the original owners and moved here from Roseville.

It was their first foray into the furniture business and the timing could not have been worse, said Holman, citing the downturn in the housing market, followed by rising energy and food costs that have combined to put a stranglehold on many families' discretionary spending.

"The economy is really killing us," he said Monday. "The last couple of years, it's been terrible."

Broad Street Furnishings is the third funiture store in the area to hold a liquidation sale in the past year. Hedman's Furniture recently reopened as an Ashley Furniture store in Grass Valley. Dovetail Design said last week that its going-out-of-business sale has been so successful that the downtown Grass Valley store will eventually reopen.

Holman, 47, said Monday he has no plans to reopen his furniture store and no idea what the future holds for the building once the sale ends.

He said his own long-term plans are much more pragmatic.

"I'll have to go out and get another job," he said.