Molbak's Garden + Home in Washington closing after 67 years

Molbak’s Garden + Home in the Seattle suburb of Woodinville, Washington, plans to permanently close after 67 years after a lengthy conflict with its developer landlord. 

In a statement, Molbak’s CEO Julie Kouhia said that Molbak’s and Green Partners, the IGC’s landlord and the developer of The Gardens District, recently had a confidential mediation, which she said was not successful. 

“Despite our best efforts, we have not been able to come to an agreement with Green Partners that would allow us to stay in our current location in Woodinville,” Kouhia said. “Unfortunately, this means there are no financially viable options that will allow Molbak’s to keep operating as the kind of company and community resource we want to be. 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.” 

The family-owned business was started by Egon and Laina Molbak, who came from Denmark in 1956. It has 70 full-time employees and 45 part-time and seasonal employees. 

A new Molbak’s was supposed to be the centerpiece of The Gardens District, a “city in a garden” which would also include housing, retail, restaurants and other amenities, according to the IGC. 

Molbak’s said it was informed in November by Green Partners that it would no longer be part of the project and the agreement to include Molbak’s in The Gardens District was terminated. Green Partners announced in November that it was shelving the project altogether, rather than moving ahead without Molbak’s as part of the redevelopment, The Seattle Times reported.

Kouhia said Molbak’s had been working with Green Partners since 2008 to co-create The Gardens District, a new development that would transform more than 19 acres of Woodinville into a one-of-a-kind community rooted in nature, sustainability and human connection. Molbak’s had asked Green Partners to reconsider its decision. 

According to The Seattle Times, the Molbak family sold the 19-acre property where the garden center is located to Green Partners in 2008. For the next 15 years, the company thought the plan was to redevelop the site as a housing, shopping and entertainment area with a new Molbak’s store, plus apartments, restaurants, other amenities and a unique, sustainable design. 

According to The Times, the real estate group — which is associated with Cascade Investment, a company that manages investments for Microsoft co-founder Bill Gates — blamed “a combination of factors, including the economic uncertainty brought on by higher interest rates and rising construction costs along with the complexity of creating a large-format garden center in a dense urban development.” Green Partners said it had allowed Molbak’s to operate for years without paying rent. 

In response to a question about media coverage saying it still has years on its lease for its current location, Molbak’s said it’s not talking publicly about details of its lease but said it “needs a lease that’s economically viable and allows us to remain in our long-term home of Woodinville. Unfortunately, we were not able to reach an agreement with Green Partners that meets these conditions. If we could stay, we would.” 

Molbak’s said it’s not looking for a new location because “finding a new location and moving operations is more complex with a garden and home center compared to most other types of businesses. After carefully considering the challenges, we don’t think it’s possible to move to a new location in a timely manner.” 

The Molbak family — 98-year-old founder Egon Molbak, owner Jens Molbak, Ellen Molbak Welsch, Kirsten Molbak Paterson and Heidi Molbak — also released a statement. 

“We know this is incredibly difficult news for our employees and their families and the many other friends of Molbak’s throughout our industry, the Puget Sound, the country and the world. The Gardens District was an exciting plan for our future and our opportunity to remain in Woodinville for decades to come. A new Molbak’s was supposed to be the heart of the project. To not be able to realize that vision is heartbreaking to us. Our roots run deep. We can’t say enough about the amazing Molbak’s team, our loyal customers, our supportive vendors and the many community partnerships we’ve made over the years. Family businesses are special. We’re grateful for the opportunity to share the passion for horticulture, floriculture and community that Egon and Laina began in 1956 and nurtured and grew in Woodinville for 67 years. Thank you for your place in our family’s business. While Molbak’s may be coming to an end, the work we have all done together will last in the hearts, friendships and professional relationships we all share.” 

Kouhia — who has been CEO of Molbak’s since 2015 and had been chief operating officer before that since 2006 — previously recognized local officials, including Woodinville City Council and Mayor Mike Millman, for their support in trying to keep Molbak’s a part of the project. In June 2023, Woodinville City Council voted 5-2 to approve a development agreement for The Gardens District that required Green Partners to include Molbak’s in the initial phase.  

Molbak’s plans to share more details in early January as it works on a transition plan over the next few weeks to shut down operations and permanently close. The business expects to shut down sometime in the first quarter of 2024 and will have a going-out-of-business sale. 

“Our main goal is to close down with integrity and in a way that respects our employees, vendors and customers. We also want to find a way to celebrate the history, impact and joy of Molbak’s,” Kouhia said. “We believed the development was our best plan for the future and our opportunity to remain in Woodinville for many years to come.

“As we prepare to write the final chapter of Molbak’s, we wish the story had a different — and happier — ending. We can’t say enough about our amazing team, our loyal customers, our supportive vendors and the many community partnerships we’ve made over the years. Thank you for making Molbak’s a one-of-a-kind place built on flowers, friendship and family.”