WOODINVILLE, Wash. — Molbak’s Garden + Home announced Monday it would close after it could not come to an agreement with its landlord to stay in the building.
“We know this is incredibly difficult news for our company, our employees and their families, our loyal customers and vendors, and many other friends of Molbak’s,” CEO Julie Kouhia said in a statement. “The Gardens District was our plan for the future of Molbak’s and our opportunity to remain in Woodinville for many years to come. To not be able to do that is devastating.”
Molbak’s, a Woodinville staple for 67 years, had been negotiating with Green Partners, LLC after the developer decided in November to pause plans for the Gardens District construction project.
"It's honestly heartbreaking because it's a special place," said Barbie King, a Molbak's customer.
Molbak’s was slated to be the centerpiece of the 19-acre development but said it was “forced out” of the project and the agreement to include Molbak’s in the project was terminated. Green Partners said it was not developing the project as envisioned due to rising interest rates, increased construction costs and the complexity of the project.
"Maybe Santa will come save Molbak's," King said. "This is the holiday time of year so to have news like that right now, is not acceptable."
Green Partners said earlier this month it was negotiating with Molbak’s to remain in the space and the garden store had several years on its lease. Molbak’s said Monday it went through a mediation process with Green Partners but it was not successful.
“There are no financially viable options that will allow Molbak’s to keep operating as the kind of nursery, company and community resource we want to be,” Kouhia said. “After considering many different possibilities and a great deal of discussion with the Molbak family, we’ve determined that we no longer have a path forward.”
Molbak’s plans to create a transition plan in the coming weeks and share more details in January. The company employs 70 full-time employees and 45 part-time and seasonal employees.
"Baffled, I still do not know a solid reason why we are not being part of the project as we move forward," Kouhia said.
The company was founded by Egon and Laina Molbak, who were Danish immigrants who settled in Woodinville in 1956. They loved gardening and wanted to start their own business. The business is still family-owned decades later.
"My first reaction was, I'm sick to my stomach," said Mike Millman, mayor of Woodinville. "People coming from far and wide just to molbak's and so it's a big piece of what we're doing here. Drawing people to not only our wine-tasting industry but also to Molbak's. So losing that is a blow."
As Molbak’s plans for the next steps, the company said it wanted to find a way to celebrate its history and impact on the community as it closes down “with integrity.”
“We’re all struggling to understand what has happened,” Kouhia said. “People are confused, shocked and heartbroken.”