Fire prompts merger of two furniture retailers

Eric Sinclair, left, Mark and Tom Malchow

ABERDEEN, S.D. — Following a fire that burned Aberdeen, S.D.-based Malchow's Home Furnishings' location to the ground last October, Montgomery's, a furniture retailer also based in South Dakota, has announced its purchase of the longtime South Dakota retailer and plans to bring members of Malchow's leadership into its leadership team. Combined, the two retailers bring over 200 years of furniture selling experience to the table.

"Discussion of joining Montgomery's started after the devastating fire that burned Malchow's to the ground in October 2019," said Mark Malchow, half of the third-generation father/son team behind Malchow's. "We knew from the moment we started talking with Clark and Eric that Montgomery's shared our business philosophies on how to take care of customers and employees, and what it means to be a long-time family- owned business in this state.

The fire that wreaked havoc on Malchow's former location started out of one of the 17 apartments that previously sat atop the store's showroom. It destroyed Malchow's showroom, all of the apartments attached to it and caused  several nearby businesses to close temporarily because of smoke and water damage. A month after the fire, state investigators determined that the fire was started by a homemade lighted vanity mirror, according to Aberdeen News.

To replace Malchow's former location, a fourth Montgomery's location will be built in Aberdeen later this year, nearly doubling the space provided by the former Office Max store the retailer has been operating out of. The new store will offer home furnishings, flooring, lighting, window treatments, mattresses and complimentary design services, and will serve all of Malchow's previous customer. An estimated seven to 10 new employees will be hired as construction nears completion on the new space later this year.

"Both companies have not only survived but thrived through droughts, recessions, wars and multiple pandemics," said Eric Sinclair, fifth generation owner of Montgomery's. "We see the future as bright."

A large-scale retirement sale for Tom Malchow, Mark's father, will begin in mid-August on site at the store's current showroom. Mark, Tom and the Malchow's team will run the sale through the fall prior to completion of construction and opening of the new Montgomery's store. Mark will move into a managing partner role with Montgomery's beginning in 2021.

"The retirement sale will offer amazing values as a way to acknowledge my dad for all he has done to build this business and to thank the Aberdeen community for their ongoing and continued support," explained Malchow.

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