Business of Home Podcast

The Thursday Show: A New Year's Tariff Reversal. Plus: Bankruptcy for Food52 and Schoolhouse

Date: January 8, 2026
Host: Dennis Scully
Guest: Fred Nicolas, Executive Editor, Business of Home

Episode Overview

This Thursday Show episode dives into the most pressing news impacting the interior design industry as 2026 begins. Host Dennis Scully and editor Fred Nicolas analyze the unexpected pause in proposed tariff increases on furniture and cabinetry, the bankruptcy of Food52 (and its subsidiaries Schoolhouse and Dansk), a creative new application for AI in real estate, Sandow’s latest acquisition, and the passing of famed designer Thomas Britt. They close by discussing notable industry moves and honors, maintaining their signature witty, informative tone throughout.

Key Discussion Points & Insights

1. Tariff Reversal and Industry Impact

Segment begins at [04:19]

• Original Tariff Plan:
  • In September 2025, President Trump announced tariffs on upholstery, cabinetry, and vanities—initially 25%, set to rise to 30% (upholstered furniture) and 50% (cabinetry/vanities) on Jan 1, 2026.
• New Development:
  • The White House has paused this rate hike for one year, sticking to 25%. Fred calls it “the rare tariff pull back from the Trump administration.” ([04:38])
• Political Context:
  • Fred attributes the decision to election-year politics and public focus on affordability. He notes, “Most people acknowledge that tariffs do not make things more affordable.” ([06:25])
  • Supreme Court is set to rule on global tariffs, adding uncertainty.
• Industry Reaction:
  • Upholstered furniture: “I think 25% is a big number. It not going up an additional 5% I don’t think is going to make anyone’s year…” ([08:03])
  • Cabinetry/vanities: Potentially more relief, as a 50% increase would have been major. “People who import cabinetry and vanities are no doubt cheering this news wildly…” ([08:41])
  • Domestic manufacturers: Likely disappointed as they lobbied for even higher tariffs.
• Cautious Optimism:
  • Both Dennis and Fred highlight that it’s too early to celebrate or despair—a lot depends on pending Supreme Court decisions.

2. Food52 & Schoolhouse Bankruptcy

Segment begins at [09:46]

• Background:
  • Food52 evolved from a recipe site to a major content-commerce hub, at one point valued at $300 million. They acquired Schoolhouse (lighting/home goods) and Dansk (tabletop).
  • After the boom during COVID, the company faced leadership turmoil, layoffs, and financial irregularities.
• Latest News:
  • Filed for bankruptcy; up for auction. America’s Test Kitchen (owned by Marquee Brands) is likely buyer.
  • Major layoffs—75%+ of staff lost jobs over the holidays.
• Analysis:
  • “It’s just a sad story from start to finish.” ([11:11] Dennis)
  • “This is a clear example of how you pump tons of money into something, these crazy high expectations… At the end of the day, so many people have lost their jobs.” ([12:36] Fred)
  • Schoolhouse, once a steady brand, also impacted.
• Future of the Brands:
  • America’s Test Kitchen may keep Food52 but could spin off or sell Schoolhouse and Dansk. Staff cuts raise urgency for fast sale to maintain brand value.

3. Sandow Acquires Architonic: Strategic Moves in Design Media

Segment begins at [15:42]

• Who is Architonic?
  • A major European database for building and design products, used by architects and designers; brands pay to be listed.
• The Rationale:
  • Fred: “If you own a lot of international design brands, you can sort of sell across them… I think that’s what Adam [Sandow] wants to do.” ([17:36])
• Sandow’s Approach:
  • Dennis: “It’s always as much a scientific lab and a place where experimentation is happening with Sandow. And then I think the scale is another big part of what he's doing.” ([18:24])
• Broader Industry Trends:
  • European markets showing resurgence. Fred jokes: “Adam and Gary [Friedman]… can sort of divide up the continent.” ([19:28])
• Material Bank News:
  • Adam Sandow is back as CEO. The company is reportedly growing 80% year-over-year, especially as it expands in Europe.

4. AI in Real Estate: Knights, Dragons, and Viral Listings

Segment begins at [21:47]

• The Story:
  • California agents sell a $70M estate by using AI to add medieval knights, dragons, and battles to their property video.
  • “[The video] looks like a pretty good B grade Hollywood movie. There’s a dragon flying over the property.” ([23:08] Fred)
• Reaction:
  • Both hosts find it fun and creative—an example of AI being used for harmless novelty.
  • Fred: “If you’re looking for a harmless, fun use of AI, I think we found it here.” ([23:22])
• Broader Implications:
  • Designers are already beginning to use AI for simulated walkthroughs; may not be long before clients are placed “into the video” presentations.
  • “There’s just a fun new way to present, whether it’s real estate, whether it’s interior design, or a brand.” ([26:00] Dennis)
  • Both agree this is just the beginning of AI’s presence in storytelling and property marketing.

5. Remembering Thomas Britt

Segment begins at [26:53]

• Legacy:
  • Passed away this week; known for exuberant, vivid interiors and for being a “multi-dimensional character, larger than life.” ([28:40] Dennis)
  • Mitchell Owens (editor): “Great and bombastic and terrifying and a person you always wanted to please just to get that puckish smile.” ([27:46])
  • Fred recalls being intimidated but ultimately charmed by Britt’s humor and talent, noting his unique style: “His stuff sticks out.”

6. Deals, Market Moves & Industry Honors

Segment begins at [30:15]

• Manwa’s $58.7M Acquisition:
  • Chinese firm Manwa acquired Southern Motion and Fusion Furniture—seen as potentially strategic amid tariff uncertainty. “The deal landscape is certainly hot right now.” ([30:50] Fred)
• Proposal to Ban Investors from Single-Family Purchases:
  • “President Trump put out some communication that he’d like to ban large investors from buying single family homes… Affordability is perhaps one way to address housing affordability…” ([31:08] Dennis)
• Ben Pentreath Named OBE:
  • Noted British designer received the prestigious Officer of the Order of the British Empire honor. “Couldn’t happen to a smarter, more interesting, kinder guy.” ([32:40] Fred)

Notable Quotes and Memorable Moments

• On Tariff Reversals:
  • “Look at us delivering a positive tariff story right as the new year starts.”
    — Dennis Scully ([04:38])
  • “We’re in a weird little tariff twilight zone at the moment.”
    — Fred Nicolas ([06:49])
• On Food52’s Downfall:
  • “It’s a remarkable story of just how overly enthusiastic people can get when there seems to be a great concept…”
    — Dennis Scully ([11:32])
  • “At the end of the day, so many people have lost their jobs. And as I mentioned, the bankruptcy fire sale is for $6.5 million. I don’t know if that’ll actually go through, but this is a company that Food52 alone did over 26 million in revenue."
    — Fred Nicolas ([12:36])
• On AI in Real Estate:
  • “If you’re looking for a harmless, fun use of AI, I think we found it here.”
    — Fred Nicolas ([23:22])
• On Thomas Britt:
  • “He was a memorable figure and colorful and in a way, I think represented what you sort of want designers to be, a multi dimensional character, larger than life.”
    — Dennis Scully ([28:40])

Timestamps for Key Segments

• [04:19] – Furniture Tariffs Reversed/Pulled Back
• [09:46] – Food52, Schoolhouse, Dansk: Bankruptcy and Industry Impact
• [15:42] – Sandow Acquires Architonic; Media & Technology Consolidation
• [21:47] – AI’s Growing Role in Real Estate Marketing
• [26:53] – Remembering Thomas Britt
• [30:15] – Manwa’s Acquisition & Deal Activity
• [31:08] – Single-Family Home Ownership: New Political Proposals
• [32:30] – Ben Pentreath’s OBE Honor

Tone and Style

Engaging, occasionally wry, and generously laced with industry insight and context. Dennis and Fred mix thoughtful analysis with casual banter, striking a tone that is accessible for newcomers but rich in details for veteran listeners.

Summary prepared for listeners who need an in-depth, engaging recap of the episode’s industry coverage and commentary, capturing the highlights and essential analysis from two leading voices in design journalism.