Long-time Wellington business victim of economic downturn
Monday, 22 June 2026
One of the capital’s oldest family-owned businesses has become the latest victim of the economic downturn.
Third generation Wellington-based Backhouse Interiors will shut its Allen St showroom at the end of the month, with the owners citing tough trading conditions.
The furniture and lighting store has been a fixture in the capital for almost 80 years, with Joe Backhouse, then a young furniture maker, opening the first iteration of it in 1948 in Alpha St.
Responsible for producing some of New Zealand’s best mid-century modern furniture and known for its catalogue of Danish design pieces, the Wellington showroom is now run by Joe’s son Gary and his wife Michelle.
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It moved to its present location in the heritage-listed Exchange Building in Allen St from Kaiwharawhara in November 2024.
“After 23 years in our previous premises, we decided it made sense to move into the city,” Michelle Backhouse said at the time. “[It] is the perfect spot for us; it is home to a strong like-minded community of design businesses, it’s central, offers great customer parking, and is an incredible space to showcase our offerings. We are delighted to be here.”
But the couple say the economic realities of trying to do business in the city with “high rents, low footfall, decreasing population, public service cuts and plummeting property prices” had proved too difficult.
As well customer preferences had changed and more people were choosing to browse, research, and purchase online.
“Running a retail business in Wellington is not for the faint hearted…It has been a very sad and an exhausting few months as we worked through our options.”
The closure follows a similar move by design store Bello which closed its bricks and mortar store in March after almost three decades of trading from the same Willis St site.
The Backhouses’ Auckland store would remain open and they would be boosting their online presence.
“We love our city and it has been an amazing place to live, but we are weary,” Michelle said.
Auction house Dunbar Sloane will move into the space vacated by Backhouse in July, while designer lighting and furniture retailer ECC‒which has had a presence in the city for 40 years‒ is moving from its current Thorndon site to Allen St in August.