McMahan's Furniture
A formerly family-owned American furniture retailer whose multistate business relied substantially on customer credit.
Last updated August 25, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
McMahan's Furniture was a family-owned furniture retailer that operated primarily in the western United States. Its first store opened in Bakersfield, California, in 1919, and the business later developed a network of stores across California, Arizona, New Mexico, Texas, Nevada, Colorado, and Oregon. The company sold home furnishings through conventional retail operations, while customer credit was an important component of its business model. This financing orientation helped the retailer serve customers purchasing furniture over time rather than paying entirely at the point of sale. The company remained independent for much of its history, but its store base contracted through transactions and closures in the 1990s and 2000s. In 1993, Heilig-Meyers acquired 92 McMahan's stores for $65 million. Heilig-Meyers also arranged in 1996 to purchase another 20 stores from McMahan's, although the available reference material does not establish whether that later transaction was completed. The remaining McMahan's operation continued with a smaller number of locations, including two La-Z-Boy Furniture Gallery stores—one in California and one in Oregon. McMahan's encountered a prolonged deterioration in the home-furnishings market beginning in late 2006. Three remaining stores were closed in 2006, and the company announced on August 26, 2008, that it would shut down its furniture operations over the following months. The announcement attributed the decision to worsening macroeconomic conditions and a sustained decline in demand for home furnishings. Management said that the company had previously recovered from downturns, but characterized the decline that began in late 2006 as materially longer and deeper than earlier slumps. The final 17 stores, including the two La-Z-Boy Furniture Gallery locations, closed in 2008, ending the company's retail operations. McMahan's also became associated with a significant California tort-law case arising from a 1975 water-main rupture near its Santa Monica store. The company and its insurer, Aetna, brought an inverse-condemnation action against the city over merchandise losses. McMahan's argued that compensation should reflect retail value less average discounts, but the jury awarded damages based on wholesale value. The lower-court result was upheld on appeal. The case is cited in discussions of inventory valuation and the limits on recovering anticipated retail profits in tort claims. As a historical brand, McMahan's represents a regional furniture-retailing model built around physical stores, household furnishings, and consumer credit. Its ultimate closure reflected both company-specific contraction and the broader pressure placed on furniture retailers by the prolonged downturn in housing-related and discretionary consumer spending during the 2000s.
History
McMahan's Furniture began in 1919, when its first store opened in Bakersfield, California. Over the following decades, the family-owned retailer expanded beyond its original market and established stores in several western and southwestern states, including California, Arizona, New Mexico, Texas, Nevada, Colorado, and Oregon. The business was notable for deriving a substantial share of sales from customers who used company-provided credit, linking its retail activity to installment-style household purchasing. The company remained a regional furniture chain rather than becoming a national operator. A major change came in 1993, when Heilig-Meyers acquired 92 McMahan's stores for $65 million. In 1996, Heilig-Meyers arranged to acquire a further 20 stores. Available accounts do not establish whether the second proposed transaction was completed, so its final status remains uncertain. McMahan's retained a smaller store base after the 1990s transactions and subsequent contraction. The retailer's later years were marked by store closures and difficult market conditions. Three remaining stores closed in 2006. The company subsequently described the downturn in home furnishings that had begun in late 2006 as unusually prolonged and severe compared with earlier business declines. On August 26, 2008, McMahan's announced that it would close its furniture operations within the next several months. Its statement attributed the decision to the broader economic slump and continuing weakness in the home-furnishings market. The final 17 stores closed in 2008. Among them were two La-Z-Boy Furniture Gallery locations, one in California and one in Oregon. A separate episode in the company's history involved a 1975 water-main rupture near McMahan's Santa Monica store. McMahan's and its insurer, Aetna, sued the city under an inverse-condemnation theory for losses involving merchandise. The company sought an instruction allowing compensation based on retail value less average discounts. The court declined to give that instruction, and the jury calculated damages using wholesale value. The appellate court upheld the result and relied on the principle that expected profits from a future retail sale are not ordinarily recoverable as tort damages. The decision became a leading California case concerning the valuation of damaged retail inventory. McMahan's ultimately disappeared as an operating retailer in 2008. Its history illustrates the evolution and eventual contraction of a long-established regional furniture chain whose store network, credit-led sales model, and exposure to discretionary household spending made it vulnerable to prolonged market weakness.
- 2008
Operations wound down
[1]McMahan's announced the closure of its furniture operations and subsequently shut its final 17 stores.
- 2006
Three stores closed
[1]Three of the remaining McMahan's locations were closed as the company's retail footprint contracted.
- 1996
Proposed additional store sale
[1]Heilig-Meyers arranged to purchase another 20 McMahan's stores, although completion of the transaction is not confirmed in the available material.
- 1993
Sale of 92 stores to Heilig-Meyers
[1]Heilig-Meyers acquired 92 McMahan's stores for $65 million.
- 1975
Santa Monica inventory-loss litigation
[1]A water-main rupture near the company's Santa Monica store led McMahan's and Aetna to pursue an inverse-condemnation claim against the city.
- 1919
First store opened in Bakersfield
[1]McMahan's Furniture began operations with a store in Bakersfield, California.
Products and positioning
A regional, family-owned furniture retailer serving western U.S. markets, with customer credit as a significant part of its commercial model.
Furniture retail
Home furniture
McMahan's core business was the retail sale of furniture and related household furnishings through a network of physical stores. The available sources do not provide a complete product-category list, but identify the company as a general furniture retailer serving household customers.
Furniture retail
La-Z-Boy Furniture Gallery locations
Two of McMahan's final 17 locations operated as La-Z-Boy Furniture Gallery stores, with one located in California and one in Oregon. These locations formed part of the company's remaining retail network before all operations ended in 2008.
Retail financing
Customer credit
Customer credit was a major commercial feature of McMahan's business. The company generated a substantial portion of its business from customers who financed furniture purchases, although the available sources do not specify the exact credit products, terms, or underwriting structure.
Brand decisions
2008
Decision to close furniture operationsStrategyBackground
McMahan's faced a prolonged decline in the home-furnishings market that the company said had continued since late 2006.
Action taken
The company announced on August 26, 2008, that it would close its furniture operations within the following months.
Aftermath
All 17 remaining stores, including two La-Z-Boy Furniture Gallery locations, closed during 2008 and the brand ceased operating as a retailer.
1996
Proposed sale of another 20 storesM&ABackground
Following the 1993 store transaction, Heilig-Meyers arranged to purchase an additional group of McMahan's locations.
Action taken
The parties arranged a purchase involving 20 stores.
Aftermath
The available reference material does not establish whether the sale was completed.
1993
Sale of 92 stores to Heilig-MeyersM&ABackground
McMahan's transferred a large portion of its store network in a transaction with Heilig-Meyers.
Action taken
Heilig-Meyers acquired 92 McMahan's stores for $65 million.
Aftermath
McMahan's continued with a smaller remaining operation; the transaction marked a major contraction of its independent store network.
Transaction value. $65 million (1993)
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/mcmahans-furniture · Editorial policy · How profiles are compiled