How I Built This with Guy Raz

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

10 snips
May 11, 2026
John Gabbert, founder of Room & Board and former leader at his family’s furniture business, built a modern American-made brand without outside investors. He talks about his IKEA revelation, a decade-long family rift after a failed buyout, trading shares to go independent, choosing slow, principled growth, and eventually transferring ownership to employees.
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ANECDOTE

How A Trip To Ikea Sparked A New Retail Model

  • John Gabbert discovered Ikea in Sweden in 1972 and realized a retailer could design product, control manufacturing, and sell directly.
  • That trip was a revelation that planted the seed for vertically integrated retail and Room & Board's model.
ANECDOTE

A Broken Buyout That Split The Family

  • A signed buyout agreement with his father fell apart on the closing date in 1980, triggering a decade-long family estrangement.
  • John traded his ~30% Gabbert's shares for ownership of the small Room & Board division and left the family business.
INSIGHT

Customers Mature Into Higher Quality Demand

  • John repositioned Room & Board from temporary, IKEA-like pieces to higher-quality American-made furniture as customers aged into permanent homes.
  • A bigger Edina store revealed customers who bought affordable pieces when young then upgraded to solid wood and steel designs.
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