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A Few Years Ago I Almost Sold My Business. Here’s How It Went Down…
I’ve got a story for those of you who like the inside scoop on the design and media world. It starts out riveting and ends up sad (Update: plot twist ending!! Read till the end). Six weeks ago, the beloved brands Food52 and Schoolhouse Electric filed for bankruptcy. It was a shock, with huge layoffs right before Christmas and an official announcement right after. I guess that news gave me permission to publish my story.
During early 2021, the second half of the lockdown, I received an email from one of the founders of Food52. She asked to jump on an urgent call to talk about something big. I have always admired her, and I loved Food52. I knew they had been acquired by TCG, a huge venture capitalist firm, for 83 million months before, so my interest was piqued on all fronts. Absolutely, name the time.
The call was requested for 2 days later, at 10 am on a Saturday, which was a bit of an orange flag, but they said it was urgent, and I was so curious (plus lockdown – nothing to do). The reason for the urgency would unfold later. I put it on speaker so Brian could hear. After some COVID small talk, Amanda and the then-president made a big proposition. TCG wanted to buy me and my company.
At the time, Food52, under TCG, was acquiring Schoolhouse Electric, and they wanted to buy my company and merge us together to become the ultimate content, commerce, and community hub. A one-stop shop for all things home design. They were in the late stages of the Schoolhouse deal, and they felt there was a missing piece – someone to bring along the community (you) and the storytelling (me and my team). They wanted an expert voice in the tone of Schoolhouse, to give tips, and do makeovers, and basically do what we already did so well, but for them. And they wanted to announce us at the same time (thus the urgency). The meeting was so exciting. I was mentally shouting “yes, yes, yes,” over every word. I would work with the other arms of the company to run the editorial/content part of it and bring along my community. We’d blow up Schoolhouse to the international brand it was always meant to be.
Now it needs to be said: I have always LOVED Schoolhouse Electric. And always will. We are aligned stylistically and aesthetically. Everything they did was heirloom-quality, vintage-inspired but with that slight irreverence and edge (and a huge Scandi bent). I couldn’t afford anything real from them for years, but in my 20s and early 30s, I would buy small things on sale just to have something by them.
We shot a lot of my first book, Styled at the founders’ house – still some of my favorite shots that don’t seem to date. Plus, they had that specific alchemy that felt so Portland-y, youthful, vintage-y, but fun. And we were about to move back.
My gut, my heart, my brain, and my mouth said a huge “YES”. I was buzzing with excitement. Not at selling my company necessarily, but at the prospect of not running the business alone, being able to focus on the parts of it that I loved, and most importantly, partnering up with Schoolhouse just as we were moving back to Portland, which was happening only a few months later. It was such a beloved Portland brand, in the coolest vintage factory warehouse that felt like a destination more than a store. It was absolutely kismet. Like the universe was saying, “We heard you”. Brian and I just stared at each other with a “is this actually happening” giddiness.
So I secured a mergers and acquisitions lawyer and started talking EBITDA (the valuation of what we are actually worth). You can’t sell something without naming a price. But they didn’t just want to hire me, they wanted to buy the blog, including the then 12 years of archives (every blog post would be theirs), my Instagram, and me (a 5-year contract, at least). It felt impossibly complicated. Doable. But how?
First things first – how much was I worth? I’m not a typical company; my IG and blog are very much based on my personality, and historically, there are far more risks to buying a person than a standalone brand that you can manipulate to be anything. I wasn’t desperate to sell. My company was doing really well for its size. We had healthy profit margins that were different every year and dependent on the big projects we were doing (and how much on-camera work I was willing to do). We had a relatively low overhead (6 salaries + hefty marketing and I.T. costs), but no longer had an office and no product inventory. But how much is someone’s 12 years of archives actually worth? They wanted all the assets (which was fraught – so many photographers involved, did I even “own” all the photos or all my work?). They wanted my traffic, our Google ranking, they wanted all of you to go over there with me. They wanted to take over the instagram as theirs. Had this been done before? And they wanted me. Even if we figured out all the other stuff, what would my salary possibly be to convince me to give up my freedom and autonomy??
I had just made the decision to slow down and move to Portland (mini-farm, pigs, you know the story) and was committed to a smaller life while our kids were young. I didn’t want to miss cheer competitions or school plays. I really liked being a homebody and self-producing shoots, then making soup at night. Amanda got that, but the others involved made it clear that the expectation would be large (which I fully understood). And from their perspective, of course, no one wants to buy someone for a shit ton of money who wants to “slow down”. They told me there might be a lot of international travel, representing brands in different markets. Lots of highly produced on-camera shoots. They would want to sell me as the spokesperson for a lot of their brand partnerships – all things I had done for years, but it’s definitely the most exhausting part of the job. It would not be a slower or smaller life.
So how much was it all worth???
Plus, it was messy. At the time, I was in the middle of probably 25 – 30 large contracts on both my house and my brother’s river house. Contracts that wouldn’t be closed out for YEARS (until both projects were completely finished), many of which we already had the product. Every single one of them had been negotiated differently. What would happen to those contracts and that money? Would they own them? And hell, some were with direct competitors! They talked about buying them all out, but it started to get pretty messy (and I still needed to finish our house – we were in mid-construction, I needed these partnerships, I had counted on that product).
Then there was the risk of what would happen to my team? I didn’t just value my team; I cared about them so much, and I knew that selling the company meant that I would forfeit how we operated. They might not report to me anymore. I didn’t know if I could favor them or protect them. Sure, they said that I could bring them along, and they said they’d be protected, but they would be employees of the larger parent company, and therefore no guarantees on anything. That scared me.
What if the company did something in my name that was super unethical? So many businesses were being outed as having a really bad company culture or super toxic leadership. Handing over my name and reputation to other people felt very dangerous.
But despite the risks and unknowns, I was still so excited…. and so were they. There were months of negotiating, and after every lawyer meeting, I would say the same thing to them, “I want this so bad, but it has to make sense financially for me”. I really wanted to make it work, but the risks were massive.
Plus, the biggest risk of all – what if it didn’t go well? What if their (our) business tanked and they owned my blog and Instagram? Would everything I’ve built go down with it? Would I have to start over at zero? Would I be bankrupt?
The more risks that stacked up and the more they warned it was a really demanding job, the less I was willing to come down in price. I had a business manager and lawyer helping me, thank god, confirming that I was right every step of the way. We needed enough money to cover the risk of losing it all. And we were very, very, far apart. They wanted to give a generous signing bonus and a healthy salary, but they proposed to pay mostly in equity. Now getting equity can be great if the company does well, but worth nothing if it doesn’t.
After four months of negotiations (oof those lawyer fees!), my lawyer put it very clearly:
“This is a very bad deal for you. They are paying you with your own money.” And then, “They will not come close to paying you what you are worth, and if we keep pushing, you’re gonna damage your personal relationship with them.”
Such good advice, and what a relief to hear. It wasn’t a hard decision since he put it in such clear terms.
They were scheduled to fly into Portland that day, and our dinner would be that night, to celebrate. My lawyer told them the bad news and invited them to cancel the dinner. They wanted to have dinner anyway, and against my lawyer’s advice, I agreed (very nervous, TBH). It was honestly so lovely. At this point, we lived in Portland, so we talked about life after lockdown, kids, and the digital world. They didn’t push, and we didn’t rehash any negotiation terms. I think they might have been relieved, too. I was and always will be a fan of Amanda Hesser – a smart, grounded, and funny woman who seemed to genuinely get me.
Ultimately, we left things on really good terms. I’ll go ahead and credit the fact that we were all seasoned women in business, and so respectful throughout the whole process. They understood my perspective and I theirs. When you are buying a person’s brand, you have zero guarantees long-term that they’ll perform for you, that they’ll be worth it. You can’t control a person like you can a brand. Hell, what if I died or committed a felony? Had my name not been as attached to my blog and IG, maybe the deal could have made more sense for them – but they were taking huge risks too, which was why they couldn’t come up with too much. I got that.
I wasn’t bummed at all. The whole thing made me really reinvigorated, actually. It reminded me of how good my team is, how successful the company was (regardless of EBIDTA), and that if we worked hard, a lot of people read and listened. It felt good. And I learned SO MUCH.
Years later, we watched as they had round after round of layoffs. But it was a very tricky economy for a lot of brands to navigate post-COVID (still is). I watched, hoping they would make it – zero schadenfreude, I promise. We were all rooting for Schoolhouse Electric. But I knew that I wouldn’t have made it through those cuts, and for sure not my team. I had made the right decision, but I had hope for them. I was still a fan. I AM still a fan.
So when we heard about the layoffs a few days before Christmas, followed up by the official bankruptcy filing, my entire team slacked in shock. Not Schoolhouse! It was a beloved legacy brand, a design darling. Their recent collaborations were fresh and high-quality. In fact, I had pitched them earlier in the year, and we were in talks for a larger partnership in 2026. I wanted to be part of their next chapter – not by selling my company to them, but similar to what I did for Target. My love for them never waned. After the news, my entire team went online and bought/hoarded a ton of pieces (at 60% off) because we thought they would be collector items. I mostly just wanted a souvenir before it was gone forever.
And that’s where I thought the end of the story would be. Me learning some lessons, us mourning the death of a beloved brand. But just as this post was going up (last weekend), it was announced that Hudson Valley Lighting Group has bought Schoolhouse Electric! Obviously, there are a million unknowns, but I’m so excited to see it revived and hopefully the brand identity intact. They seem to be a really robust and healthy brand, with all their operations and marketing dialed in. And they have a great eye for product and clearly know how to operate a company. Wishing them so much luck.
The whole process, which was so dramatic at the time, really helped me put things into focus. Brian and I had to think really existentially about what we wanted more of in our lives – money or time? And while I know other people would make the other choice, it was crystal clear to us. I was actually grateful that the amount was as low as it was. Had it been triple the amount, I might have been too tempted, and I might be doing desperate dancing memes on TikTok trying to grow a following (kidding… I’d be writing my romance novels).
So that’s the story of how I almost sold the company, but didn’t. And how grateful I am for that huge lesson. Thank god I’m still here and that I can grow (or tank) my business all on my own:) I really, really love it, and I have you all, and my team, to thank.
So this is my official, wishing you luck, Schoolhouse. EHD is rooting for you.
Opening Image Credit: Photo by Kaitlin Green
This was really interesting – thank you for sharing. Your comments about chosing what you want to do with the business has me writing out a question I’ve thought about asking for a while. As a long time reader (like Glendale long time) what is going on with the blog? This is asked in full acknowledgement that blogs like are free content and I’m in no position to ask anything of it but I’ll be honest, it kinda of feels like it’s lost it’s way. I understand that you don’t have any projects underway that are at shooting stage at the moment, but the constant Wayfair link posts are feeling pretty tiresome. I totally understand that links are how this business. makes money but prior product round ups were curated into pretty grids or mock-ups/mood boards or shoots that felt inspirational and made me interested in the products in context and more importantly felt like real design content. Long lists of random furniture without context and constantly repeated photos aren’t really design content and the range of brands featured seems to have really narrowed. I used to feel like this was a daily real blog and I read everyday –… Read more »
Hi ! Longtime reader here too, and I think the current economy and media landscape make it very difficult for OG blogs to be sustainable, especially if like EHD there are several salaries to consider. I used to think that CupofJo seemed to be doing pretty well in the industry with a good work/life balance (only weekday posts, only 3 salaries I think + regular contributors), and yet they had to diversify with a paid substack 3 years ago (and it works very well !). Same for LaineyGossip (a free celebrity/gossip site), who has to had to make extra substack (paid) content because ad revenue is down. It must be hard to “reduce” the amount of content you produce to have time to make it more “authentic” for example (less link posts) because it probably means reducing your revenue by a lot …so yes the business has to be authentic but also, it’s a business ! I don’t think you need to get all your design content elsewhere, but maybe you should diversify your sources. You will feel less frustrated if one day the EHD post is not to your liking but the AD or domino one is ! It’s… Read more »
I can’t help agreeing with Melody- sometimes it feels like we’re reading a catalogue with ongoing advertorial for All Modern and Wayfair.
I don’t think it’s useful to tell readers who take the time and effort to respectfully provide feedback that they should look elsewhere for their design content.
That’s most likely the exact opposite of what the blog needs but more importantly customer feedback is critical for the blog to stay relevant. The EHD team likely invests heavily in market research to gauge reader interest and insights and it’s incredibly important for the sustainability of the blog, to stay responsive.
As you say, it’s a business which means it needs to balance realistic revenue goals with its audience needs and ensure it doesn’t inadvertently sell the goose that lays the golden egg.
I do think you have unrealistic expectations. what today’s post said to me was that Emily’s value as a content creator is that she’s a human being. that’s why we like to check the blog every day.
the internet has only existed for a few years, and before that, you had to pay up every time you wanted to read something. remember getting yelled at at a bookstore for spending too long reading a magazine? Emily’s not doing any of this for her health, but she still is true to who she was when she started, as this whole food52 story demonstrates.
Hey melody, I hear you and I really appreciate you taking the time to comment. The blog world has changed (and most are gone) but we survived because we have a really thoughtful approach and a lean yet nimble team. We build the editorial calendar in advance and try to keep it very balanced – design process posts, reveal posts, sales posts, personal posts, budget posts, trend posts, etc. Each which its own purpose and goals. Most take 8-12 hours to source, build, write and produce (and those are the sales posts). The reveal posts obviously take much much more and its very expensive – multiple people for multiple months, styling props, professional photography, etc. Its incredibly fun and enjoyable, but its not like cooking a recipe or creating an outfit (not to say that food or fashion content creators don’t work their asses off). but to design homes and rooms is just really labor intensive and therefore expensive. continued …
Last year we had 40 reveals 😉 Almost one a week! I’m legit so proud of the work we do, but not every post can be a reveal post and the sales posts you speak of do really support us and my team. We also have had to diversify a lot over the years to stay afloat. Anyway I certainly don’t want you to get your design content elsewhere! We want you hear but also understand that we might not meet your needs or mood every day. The fact that we put out 7 posts a week is something we are really proud of and its so much work. But listen, I will absolutely take your feedback and know that its from a loving long time reader, but please trust that we are doing the best we can and are extremely thoughtful about our content. Our posts have such a variety and I really think they are so useful and helpful. Many are relate-able and solving real peoples problems. I hope you don’t read this as defensive – I just wish you were part of our editorial meetings where we brainstorm, where we make sure things feel balanced, where we… Read more »
I will say this – right now we are in the planning stages for a lot of projects, meaning the content is yet to come but we are slammed back here designing and shooting all the assets for future posts. Keep coming and if a post doesn’t grab you, come back the next day and see if that one does. We can’t please everyone, everyday but we try really really really really really hard 🙂 Thanks again for taking the time, Its honestly appreciated and shows you care which means a lot to us. xx Emily (sorry my comment had to get broken up into 4 because apparently we have a comment word cap, LOL). xx
Great response, Emily. Thank you. I’m another long time daily reader. Here’s something that occurred to me when I read Melanie’s post: I am a fortunate retiree and have almost completely renovated my mid century home. I have pretty much all of the furniture I need. When I was less financially secure and thinking through furniture purchases and remodeling plans, I absolutely devoured the relevant blog posts. I am a bit more selective now about which posts I read to the end but I ALWAYS check the blog first thing in the morning. It’s my happy place, and a safe harbor from all the bad news in the world. Keep up the good, independent work. I’m so glad you didn’t get gobbled up by corporate America!
Thank you. I really really appreciate that you read and responded to my comment. I’ll keep checking in and look forward to some exciting new things this year.
Thankyouthankyou for what you do and, honestly, for still HAVING a blog! It’s one of my favorites. I don’t read it for the design content but because it’s overall informative, engaging, friendly, and FUN! As others have said, you do you. The internet loves to give their opinion. Take it into your head, not your heart. Thanks again for all of your hard work!
While in some cases I agree with this opinion, I also take the approach of if the subject of the post doesn’t excite me today, I’ll try again tomorrow. I pretty much skip the weekend link up posts, but love the Wayfair roundups because it is a brand I can afford. That said, I’m so grateful the blog is still here. I don’t use IG, FB or TikTok and I don’t even read any other blogs but LOVE this one. For the most part, EHD for me has still stayed relevant and interesting after so many years and I find it impressive even if I don’t relate to every single post. So many other influencers only post to get people to buy things, so I appreciate the balance that EHD achieves.
Emily, Thank you for posting about the potential buyout—my husband was recently forced into selling his partnership as a larger buyout and while we didn’t feel like we had much of choice, he is definitely going through the change curve with less control over his company so I found some of your story relatable and definitely interesting.
Thank you, Rene 🙂 and we really really really appreciate you reading after all these years. I hope your husband navigates the sale the best way possible. Being forced sounds hard for sure. xx
Thanks for this interesting post! Such an interesting experience 👌 and reflections. I love this blog and have been reading since before Charlie
Thank you Alex 🙂 Appreciate you being here (and can’t believe he’s 12!!). xx
Curious on how much the team know, or what they were feeling in this time. Very interesting post.
I brought them in about 6 weeks into it, when It was getting serious and not just another venture that would peter out and cause undue worry/excitement. They were excited and nervous – just like me. In a way it meant exciting new things, perhaps new challenges in a good way. Different departments they could move around in and potential for growth in a way that is just hard at a small business. But like me the unknowns made all of us nervous. When i’ve kept things from them in the past (worries, anxieties, etc) they can tell that something is up and that creates anxiety for them, which is really unhealthy for all of us. Its like when you are a kid and can tell your parents are super stressed, like you’d almost rather know than just wonder if you are in trouble or you did something bad. And like I said, I was told over and over that they would have jobs, but everyone also knew that once you are absorbed by a larger company there were more risks (and potential). I take their futures and their careers very seriously 🙂
THIS IS SO FREAKING PROFOUND.
it is a microcosm of everything that is failing about how we’re doing things: entire economies heavily financialized instead of people living lives with enough and planning for sustainability and community and fulfillment.
humanity > money
Thank you 🙂
Another Emily – Bingo, Ringo. VC’s are about making money. Profit first. Understandable. But much of the time that comes at the cost of the most of the people involved and those that serve. And that is not sustainable forever.
Emily Henderson – GO YOU!! Way to trust those around you and most importantly trust yourself!! Our intuition never leads us wrong, but it can be hard to trust! And I am so damn glad – you are a part of my life and a respite. I too am a Glendale, pre Charlie (12!!!) follower, and I love and will always love you and your content. I remember seeing you at the beloved, amazing Rose Bowl flea market and it was def. a highlight moment. LOL. Massive, huge props for what you’ve created and continue to bring into the world! Not only do you create meaningful and authentic content but you’ve created community, two things we all desperately need right now.
I a hundred percent agree! Thank you for not selling Emily! I don’t think it would have ever been the same wonderfulness that it is as run by YOU. YOU and your team are the special sauce and as you saw, it didn’t work out great. YOU CHOSE WISELY! :-)))
Thankfully, I am glad though that Schoolhouse Electric is still going to be in existence!
Thanks for sharing such an interesting and personal story. This is what makes you and the team so great and keeps me coming back daily. I love the posts where it feels like a sister or a friend is giving wise advice, showing your integrity, and the importance of trying to think of your values and stay true to who you are. I know that’s oddly specific, but I feel like it’s something you do very well. Thank you Emily! If you do Wayfair posts to have more posts like this, I’m in!
“I love the posts where it feels like a sister or a friend is giving wise advice, showing your integrity, and the importance of trying to think of your values and stay true to who you are.” <– Second this!! I also love these “behind the scenes” snapshot of running your business, so thoughtful and interesting.
I really really appreciate this, Pam 😉 It means a lot honestly. I was nervous about this post, so thank you. xx
Once we all accept that this is a shopping site with some personal content to allow us to connect with the general “vibe” of the people who are doing the shopping, the easier it is to not be offended that it feels too commercialized. Emily’s and Brian have their substack for more personal content for anyone who wants more of that.
That said, I really do miss the “roundups” of yore that include multiple price points and multiple vendors. I realize this content still happens in posts and room makeovers, but the format isn’t nearly as crisp. And often this type of content arrives in the form of Sunday posts that are a little bit all over the place (which I think is the intent, so rock on).
So grumble grumble etc. but there are plenty of weeks when I’m barely managing my household successfully, so I’m in no position to demand more from others.
Hey Robin, thank you 🙂 While we don’t identify as a shopping site, I also appreciate the perspective. we try to be a design site with resources for sure. Ironically we stopped doing those roundup posts just never did that well, trafic-wise or engagement. So we have tried different formats over the years to serve the same need but make them more interesting. But yah, maybe by doing that they’ve lost their ‘crispness’? Great insight though. Thank you 🙂 xx
Blog readers are a selfish bunch, and I’m no exception. The og roundups were a nice resource, but certainly not as “narrative” as a design story, so I get it. Part of my thrill in designing house projects is doing it on the cheap, without compromising quality (so much second-hand shopping) – but I realize that’s hard to monetize!
Really I think I’m just salty because the Wayfair site is so slow and glitchy on mobile and I don’t want another app 😂
Everyone’s time is valuable, and community and respect built up over time is a precious thing to waste.
Our time, clicks, and comments are literally how this makes money—often in the very direct way that they live in homes they publicize in exchange for us basically buying-via partnership posts- $1000s of the literal furniture, fixtures and other finishes within.
Of course, for a lot of the links here, it’s not even used/tested out, just “shopped” and edited/AI a list of things and throw a photo from a previous design post at the top to suggest new content for the click through rate. The same reason they tolerate a certain amount of flame wars in the comments: it counts as saleable “engagement” on our part, even the negative bits, which they then monetize.
Just like Emily was correct to make sure she valued her company, employees and time correctly, it’s good customer feedback to point out when there are increasing bare bones feeling posts, when the writing or links are slapdash/misspelled or just don’t connect to anything, or when posts aren’t actually posted every day.
Well said…EH has served up insightful, brave, deep ,creative, compelling, warm, beautiful, and emotionally and spiritually generous content daily for free for years on end. As readers, we have grown to expect that and take it for granted, but it is a massive and huge undertaking. Now that high standard that you set has become something that we expect. This blog/brand/team is OUTSTANDING in reveal and deep dive posts both in content and parasocial vibe. As a reader, it makes me feel supported in similar projects. I understand the team this size can’t endlessly generate that content. However too much ‘Buy these products that none of us own’ and ‘Look at this house on AD” content dilutes the brand. Not to be rude but we know about AD, and there are ethical and political considerations in buying from various mass market retailers. I see the very real tension between doing huge projects like your brother’s home, along with the sponsorship deals and photo shoots that those entail, as well as living your life with your family. There’s also vintage/thrift/unique objects versus mass market items which are more attainable. Creating compelling daily content in that context is challenging. I believe there… Read more »
Thank you Donna 🙂 Yah we certainly wish we could test out all the product, and we always have on our list review posts (like actually going and testing out most sleeper sofas in person) but also most affordable brands don’t even stock larger pieces of furniture (if they even have a store). We hear you on that for sure. And re the smaller bloggers – we still want to do that but its so much harder than it looks and people are focusing their work on other ways of making money (we still regularly talk to Keyanna who is so talented, but the girl is busy shooting so its hard to prioritize the time to do her own makeovers). We have met with a few in person styling only readers to makeover their spaces but there is more to consider than you’d think. And then we have these two renovation coaching families (just finished and shot one last week!) which are so fun, but those take months or even over a year to get to the reveal. I’d always love to do more vintage/DIY and hoping the guest house creates a big old labratory for that. We have no… Read more »
Hey LIna! we don’t use any AI for our posts except for comment monitoring (as far as I know). We are trying out AI design programs for sure, but not for writing or selecting product. I mean, as you said there are some words misspelled which should tip you off that its humans doing it, LOL. Appreciate your feedback. Know that we are doing our best, always and glad you are here. xx
I’m glad it didn’t go through for you. Seeing that a Private Equity firm wanted to buy your company made me immediately think “Run so far away!!!” When I hear that a business was bought by PE, it makes me think it will soon be gone afterwards or not what the business once was. I just finished reading the book Bad Company by Megan Greenwell (highly recommend), which was really excellent at explaining what PE firms do to businesses. One of the stories they talk about is Toys R Us and they talk about the one in Tigard (that was my store, which is now where the Tesla dealership is). I hope that the new Schoolhouse Electric does well!
I’m in Ohio and there’s now a Tesla dealership in our old Toys R Us, too. 🙁
I totally agree. I think that 5 years go when this all happened we knew even less about what PE can do to a company and there was that buzz of excitement (amid the fears). Again I really don’t think i would have entertained this idea outside of a merge with Schoolhouse under Amanda who I really loved. Like all of the pieces felt soooo good. But I love our small team, our small business and what we can do here being totally in charge of us. x Oh and i will say that a lot of entrepreneurs are very comfortable taking risks and thats the advice they give -like go big or go home or other dumb phrases. Apparently I don’t agree (and have never identified as an entrepreneur which is another essay I want to write). Like not everyone needs to have a massive business to be content. 🙂
Thank you for sharing what is a sadly an all-too-common story. I’m a CPA who works mainly with mid-sized closely held companies, and I’ve been through many PE firm driven acquisitions both with my client being bought and also with my now PE-owned clients buying other small businesses. You are SO right that receiving equity in the buyout is a HUGE risk and frequently doesn’t turn into real dollars. Earnout payment structures (where you only get the money you’re promised if the business you’re selling them meets certain profit targets) are the other one I see a lot, and there are just SO many tools a PE firm can use after you’ve sold to manipulate results so that you never see a dime – charging your business management fees, buying other businesses through your old business and shifting their costs into it, moving product lines/revenue streams out into separate entities, etc. I advise my clients all the time – get what you can up front, and do not count on the money they’re promising that you’ll get later. Nevermind all the other risks you mentioned – if you have to work for the company after the sale, prepare for some… Read more »
Thanks, Jessie—This is a great description of how PE tanks so many businesses. Plus, the debt added by leveraging the business (at least this helps pay the founders so they may do very well in the sale) is usually sustainable only with large cuts to operations.
Thank you so much, Jessie. I really hope that people read your insight – its so valuable. My lawyer was really good, thank god, and told me some of what you said above, but honestly what you wrote is gold for many of us not in the know. Really appreciate it (and yes, so glad that it didn’t work out). xx
We have absolutely got to put brakes on these firms. I recently found myself in SHOCK agreeing with many of the points in a NYTimes editorial by (conservative pundit) OREN CASS of all people; we have fundamentally opposed views on basically everything except, apparently, that the Private Equity/Hedge Fundification of America is hurting everyone except the owners of those firms. Again, this is the guy whose think tank was on the Project 2025 advisory board and who was personally thanked for his contributions to one of the chapters, so…….apparently even a stopped clock is right 2x/day etc?
Anyway, Emily, thank you for sharing this. I’m so glad you got such good advice from your lawyer and followed your gut. My husband’s job involves working with a lot of founders who have sold their companies (“had a liquidity event”), and while it can be an efficient way to get very rich, it is a very fraught thing to lose control of something you built. And your business, as you say, is by definition far more personal than most.
(I tried to include a gift link to the editorial and the comment wouldn’t post; hoping it doesn’t now post 4 times!)
I’m so happy you had a wonderful lawyer. It does make me question these PE firms because I think it really is inconsequential if what they buy fails because they can file bankruptcy. They offer the people at the top high buyouts that are too hard to refuse as it will set up a few people for life but what about the res? There really is no value in loyalty. You definitely took the high road still going to that dinner even after being “lowballed.”
Thank you for sharing. This story speaks loudly to the old adage, “If it seems too good to be true, it probably is.” So glad you trusted your instincts – and your advisors – and made the decision to remain EHD!
Thank you for sharing the news on Schoolhouse. I wasn’t able to get all of the things I wanted during the end of the year sale so it is great to know that they will be back.
Thank you for giving us a little peak behind the curtain when it comes to running a successful business. Glad you didn’t sell and best of luck to Schoolhouse and Hudson Valley Lighting.
Wow. What an incredible story. I definitely learned a lot just reading about your experience. Have always appreciated your blunt honesty about the ups and downs running a business. And so glad you are still you!!
Holy moly, Emily. Thanks for sharing. So glad you did not get wrapped up in that mess. I echo what so many others are saying in the comments… private equity is bad bad news. You made the right decision for you and your employees. I’m so glad you didn’t get lured into what they offered. I’m a long time fan of your blog and Schoolhouse. In fact I’m pretty sure I first learned about Schoolhouse through you well over a decade ago. I’m so angry about what PE did to them and their employees. So many talented people laid off. I recently met Paul O’Leary from DeVol at his new LA showroom and we got to talking about how much his business has grown. He shared he’s also been approached to sell by larger companies backed by PE. He said he’ll never do it, he cares too much about his employees, which I find incredibly admirable. I hope that remains to be the case — I’ll for sure be a long time buyer if it does. The US desperately needs more small businesses. The past couple years my husband and I have made every effort to avoid buying merchandise from… Read more »
Thanks SB (and congrats on the house – and OOF YES, renovations are challenging). I love hearing that about Devol, you could absolutely see how a PE would ruin that quality and the sense of groundedness and integrity that they embue. It was such a great exercise in what I really want in life and like I said, its not like we are doing so well that don’t need to work hard and think about money ever. But time with friends and family along with financial security (which is a real thing, i’m not negating that) can provide all the contentment you need. Also i’m proud of you for your spending habits. I want to be better, for sure, and really appreciate your thoughtful approach. xx
This may not be a popular opinion but I did not have good experiences when buying Schoolhouse products online and their customer service was abysmal. For being a brand rooted in expensive light fixtures, their product detail pages online did not provide enough detailed specs (lumens, color temp, watts, sloped ceiling compatible, damp rating, etc.). In contrast, if you go to lumens.com, they list everything, have diagrams, etc. (I don’t work for them but I’ve bought a lot of light fixtures and bulbs through them as we’ve replaced every single fixture in our current home.) Second, a few years ago, I bought a shower curtain from Schoolhouse. It was listed as in stock which would take 3 to 5 days for delivery. After two weeks, I tried calling their customer service number to find out what happened to my order. I could never get through to a human being. I had to send them an email to no avail and it was only after posting a comment on an unrelated post on their Instagram did anyone get back to me. That curtain took almost 3 months to be delivered–no apologies, no offer for free expedited shipping. Their products are cool… Read more »
What an interesting story!! And to think all of it was going on behind the scenes and somehow you kept everything rolling seamlessly on the blog! I’m glad you are still with us!
Nothing good ever comes out of VC involvement. Look at the healthcare world. They buy up medical practices and hospitals and then after the sweet short term contract ends, they start making all kinds of demands on productivity and cost cutting. You lucked out with a good lawyer telling you to run!
Wow that’s a fascinating story from behind the scenes! Thanks for sharing. I loved Schoolhouse and got some great stuff from them over the years – was SO bummed by their bankruptcy and happy to hear they may be saved. Would have been devastated if you had sold to them and were taken down too! So glad you didn’t go that way. It makes me so sad that there are so few good blogs left and has me really valuing y’all and everything you do to keep going. Thank you.
Thank you for walking us thru this journey with you. We readers appreciate your honesty and transparency. On a side note, did any of you manage to source a Schoolhouse Alabaster Medium White sconce you might be willing to part with.? I need to replace one in a restaurant restroom. Any suggestion would be greatly appreciated.
My brother worked with them and was layed off in the first round of layoffs. As soon as food 52 came in, it was never the same. Very unfortunate. Sometimes it’s good to keep something small and not try and scale up.
I’m sorry about your brother. Yah, I think the original founders/owners of Schoolhouse wanted out for years just to retire, which we can all get (also maybe home retail is just an incredibly hard industry with small profit margins), but i’m sure they are sad about how it all went down. I would have thought that selling to Food52 was actually a great fit. But maybe being a part of one of the larger companies (i,e. William Sonoma or the Crate and Barrel/CB2 families) might have gone a different way. Who knows.
M&A lawyer here (and longtime follower, like pre-Charlie!)– I’m SO GLAD you had a good team supporting and advising you. These types of deals can be so fraught for a million reasons. Sometimes walking away is harder, and I hope it serves you in every way going forward. I’m rooting for you.
Thank you so much Leigh. I had NO idea any of it and felt like I got a real education. xx
The ad agency I worked for went thru three different PE buyouts. Each one successively worse. They are not human by design. It is all about squeezing every bit you can out of people to pay your investors. And it is fundamentally at odds with what it takes run a successful creative company. Which is why the business is now failing.
I’m glad you remained independent and am equally glad Schoolhouse is getting a second life.
Wow this was fascinating! I was shocked when I heard the news about Schoolhouse but not actually surprised. I felt like I was an OG fan of the company but most items at the time just felt a little beyond my wallet. But lately, their prices felt laughable! Like are we all living in the same economy? Perhaps if they had made real products for real people they could have stayed in business. Thanks for sharing this story with us. I always appreciate your honesty and humility, especially about money, in this business
Long term pre-Charlie reader here too. I’m so glad people have offered constructive feedback but just wanted to say I don’t feel the blog has lost its way. It’s so fascinating to watch the content pivot and change through the years but because you and your team are all genuine and authentic and transparent about the behind the scenes it’s always a wild and wonderful ride we get to take alongside you.
Emily, Thank you so much for sharing this story. It’s fascinating and though I’ve never met you, I’m so proud of you for following your gut and instincts and keeping your business. Sometimes things really do turn out for a reason and here it seems like the stars were on your side. Regarding the blog, I think what you and your team crank out each week is astounding. I can’t think of any other blog that produces content 7 days a week. And so many of them are huge renovations and reveals and photo shoots. You’re doing all this design and renovation work in ADDITION to the blog. If this is the slower pace, I can’t imagine what a faster pace would look like. Anyway, I think you and your team are damned impressive. Bravo!
Kate, bless you for saying that. I’m sharing your comment at tuesdays team meeting. Thank you thank you. For me the slower part is less on-camera shoot days and less in-person days so that I can get so much more writing or designing in bigger blocks of time. I used to work 50+ hours a week (or more, never really tracked) but what was so draining was being on camera all day every day (social media, more than photo shoots – photo shoots don’t drain me). So now its 1-2 days a week and we shoot as much as possible. I liken it to giving large presentations. Like of course you CAN do it every day, but its stressful and depleting and feels a bit hamster wheely (and to what end?). But if you knew that thursday was your big presentation day every week then you could gear up for it mentally and physically and bang it out more efficiently. Maybe i should do ‘an average week at EHD’ BTS post. It used to be different every single day/week but these days we do have a cadence that feels manageable and fun. My team is so rad and everyone works… Read more »
I’d love to read that post! I work in brand journalism for healthcare and people have nooooo idea how much goes on behind the scenes to create good content! 😅 I see and recognize those efforts there and think yall have a GREAT mix of content and consistency!
I’ve been here almost daily since the days of you having way too many arrows in jars on your mantel and I would have followed you wherever your career took you. That said, I’m so happy things have worked out the way they have for your business. I really admire how you’ve been able to keep up with the current digital landscape yet remain true to Emily. That’s why so many of us will never desert you!!
I was so sad to hear about Schoolhouse Electric. I live in Portland and have several pieces (I wish I had more). I loved going into the store (but acknowledge it’s not in the best location) and I loved their vibe and customer service (IMHO far better than Rejuvenation – who, from personal experience, seem to favor people who ‘look’ like they have money). I’m thrilled that Schoolhouse may still be a business that I can go visit. I have seen a change over the last years with this blog (I still think it’s a great read), but I get stop reading when I see the constant ‘reveals’ that have been sponsored by one company. I want content that shows that the writer has skin in the game – eg: has actually paid for the product with their own money and not just gifted. It seems that everything on social media is a ‘ad’ or ‘sponsored’. I know this is a business (and I actually very truly applaud you on your success) but it’s becoming a little bit like Chris loves Julia, where everything is a plug – and while it tries to be inspirational it, often times, becomes something… Read more »
I’m glad you did not sell. Every single Sunday, since you started the link up, I get up, grab my coffee, and get 30 uninterrupted minutes to “read my morning blog” before I have to attend to any motherly duties. I do really miss the old round ups. I seriously used them for reference every time I was making over a room. The different styles and price points were amazing, and to see it all right there was perfect. Enjoying the clothes round ups, because they remind me of the furniture ones. I’ve been reading your blog for at least a decade, and then some. Has it really been that long?
Thank you, Meg 🙂 We really really appreciate that. And good feedback re the roundups. We are re-launching the shop page to just have our favorite pieces (updated weekly) but they won’t be in blog form (similar to the gift guide pages). Another problem with those is that things sold out and then the post were almost useless (and they did take hours and hours of sourcing). But this is inspiring me to bring the conversation up again. I, too, tend to google ’emily henderson counter stool’ when I’m shopping for a counter stool. I used the roundups a ton. Stay tuned and thank you soooo much for your comment. x
I’m also a business owner, in a very different industry. Since the pandemic, we have been hanging on by our fingernails. We are now a tiny crew, paid hourly because we cannot afford salaries. Staying in business in the 2020s is a feat. It is so difficult. Good job staying true to yourself and your team. That takes guts and vision and leadership.
Good luck, E.W. It is really rough out there for small businesses. I really appreciate your comment. Its so much harder than it all looks, right?
You are the OG of styling Emily!
Stay that way!
Stay true to yourself and you will continue to shine.
I run a management consulting business and my clients are often founders who are planning to sell their businesses, people who are taking over a business someone else started, or management teams whose bosses are on either side of the deal (selling or buying) and thus going through a lot of transition. All the dynamics you described are very common. I am SO glad you had a good lawyer who could look out for you and I think you absolutely made the right choice not to sell. Candidly, as someone with zero inside knowledge of Food52 but plenty of experience with business owners in general, I had noticed over the past few years that Food52 sure seemed to be churning through executives at a rapid clip. That can be a warning sign of how things are going inside a business. I’m glad you didn’t have to deal with that. Private equity is a double-edged sword — for a lot of mom & pop businesses, selling to a private equity firm is the owners’ only shot at a sustainable retirement. The downside is that those investment firms often have zero interest in the community the business has built over time, their… Read more »
Private Equity firms have made some people a lot of $$$ but sadly they don’t have care about brands, they dont care about impact to the Earth…they only focus on consumerism and making more $$$ – they have ruined small Mum & Pop businesses who just can’t compete, creativity, and freedoms.
Emily, I never, ever, ever post comments anywhere. I honestly rarely check this particular email address, so I don’t click on your blog posts as much as I’d like (I will be updating my email address!) When I do return to your blog, your content feels like a warm hug from an old, trustworthy friend.
This is all to say, I am struck by how much you love your team, how thoughtful you are about their growth and development, and just how human (or better than many humans today) you are. They are lucky to have you as their leader!
Private Equity has turned out to be the destroyer of so many businesses. This last year Food52/Schoolhouse and JoAnn’s (which also closed owing millions to a company I used to work for that consequently went bankrupt due to the JoAnn’s debt not being paid).
This current system of capitalism at all costs with government tax laws aiding the most wealthy to continue to consolidate capital – it’s destroying everything that matters to 99% of people. Small businesses, communities, jobs, environments, national parks, oceans, and the lives of people who depend on these systems to survive. We all need to come together to change this and bring back kindness, compassion and the freaking middle class for God’s sake!
Longtime reader, rare commenter over here. I just want to give a huge kudos to Emily for responding to so many comments in this feed. This is a FREE blog. You may not like the content everyday but you have to respect the fact that they’re putting something out there every single day for FREE. Whether I read every post or not, I’m so glad for a resource sharing cool stuff that excites someone everyday. Thank you Emily and team for keeping us entertained every single day!
So so glad you made the right choice. Private equity is a cancer, and I’m so mad at them. Honesty think the business model should be illegal. It takes a useful, public good (Toys R Us, Fairway, Schoolhouse Electric!!) and converts it to private profit for a very limited few (and usually not the original owners who built the brand). Tax them out of existence I say!
Anyway, have been following along for years and years. Even before you had kids. There were times life has pulled me away from daily blog reading, but I’ve always come back to catch up and it always feels like catching up with old friends. Your team is amazing, and I love how each person’s voice comes through in their posts. It’s not generic at all. I still miss hearing from some of the OGs.
I don’t love how blogs have had to adapt to stay afloat, but I’m so glad yours is still here. Thanks for all your thoughtful, hard work in making this blog a good place to be.
Lawyer here and my alarms were going off with some of the detail offered because negotiations are often protected by confidentiality. It is an interesting read, just surprised the negotiations were share-able!
This is super interesting, thank you for sharing all of it!
I, too, am an EHD OG, and miss the old timey blogging days. Back in the day, Emily, did you have as much data about what people were staying to read/clicking on/etc., or did you have to do it instinctually?
My favorite posts were always the styling ones, since I have a plethora of styling objects (I.e. crap 😂), so it’s cheaper than anything else I can do design wise. Anytime Emily did a whole post about restyling a table, I was happy as a clam! Please keep em coming, Em!
Thanks for living, breathing, and being in community and integrity with the world, yourself, and your loved ones. I am inspired and grateful for your post. (Loooooog time follower! First time poster on any blog, ever!)
Thanks for sharing! And just throwing in my support for both Schoolhouse and Food52 – I have some pieces from both and adore them – I really REALLY hope they make it!!