Bad economy sinks McMahan's

A West Coast furniture retailer with a long history in Yuba-Sutter announced Tuesday it plans to close after almost nine decades in business.

McMahan's Furniture said it will shut all 15 of its stores, including Yuba City, within the next few months.

McMahan's did not say how many employees are at the Yuba City store or how long it has been in business in the Mid-Valley.

Sutter County records indicate the store's location at Colusa Avenue and Stafford Way was originally constructed in 1969, and McMahan's was the occupant, said Estelle Lester of the county Assessor's Office.

The company, which has been in business for 89 years, cited a slump in the home furnishings business that has been ongoing for two years.

"McMahan's has experienced downturns before and always managed to rebound; however, this decline dating back to late 2006 has been considerably longer and deeper than anything (McMahan's) previously experienced," the company said.

Along with the Yuba City store, the other Northern California McMahan's stores closing are in Woodland, Oroville, Chico, Red Bluff, Redding and Eureka. Chico and Redding also have additional La-Z-Boy gallery locations the company operates.

Earlier this month, McMahan's stores in Bakersfield and Medford, Ore., were shut down. The comp ny closed stores in Reno, Nev., Salem, Ore., and Astoria, Ore., in 2006.

The home furnishings market has had hard times recently, tied with the slump in the housing market, said Ed Garcia, general manager of Evans Furniture Galleries in Yuba City.

"It's tough out there," Garcia said. "There's a lot of furniture manufacturers that are going down as well."

Evans has been able to absorb some of the impact because most of the furniture it sells is in stock at the store rather than having to order and wait for delivery, Garcia said.

"There's still been an impact, but having it in stock has definitely helped us going through the hard times," he said.

Business in the area in general remains in tight times, said Laura Nicholson, executive director of the Yuba-Sutter Chamber of Commerce.

"We still see lots of small businesses coming in, and we've seen businesses close," Nicholson said. "It's a real mixed bag."

Losing McMahan's in Yuba City is "very sad," Mayor Rory Ramirez said.

"It's very unfortunate that you have a long-term business that provided our citizens with additional options and choices; when they go out of business, it adds to frustrations you have to deal with," Ramirez said.

Garcia said there has been a slight uptick in sales at Evans in the last couple of months with home sales showing some improvement.

"Nothing to write home about, but we've been able to stay afloat," he said.