In 1975, Jake Jabs made the bold decision to invest $80,000, which later led to the rise of a weak furniture business into a multimillion-dollar company. The 95-year-old founder and CEO of American Furniture Warehouse took over the struggling company when it was on the verge of bankruptcy and invested decades in building the company with the help of affordability, efficiency and a customer-oriented approach. Fortune reports that by the year 2025, what started as a business challenge has grown into an $858 million company operating in several states across the western US.In addition to being a successful retailer, Jabs has also built its reputation through its philanthropic contributions to charities, universities and community programs.
How a struggling furniture store became a multimillion-dollar business in 1975
Jabs’ journey with American Furniture Warehouse began in 1975, when he purchased a failing furniture business for $80,000. The company came in with approximately $1.5 million worth of assets, but it was also facing bankruptcy and needed someone willing to rebuild.Jabs took on the challenge of reshaping the business, focusing on low prices, efficient operations and reaching customers who wanted affordable furniture. Over the next decades, the company expanded throughout the western United States. American Furniture Warehouse eventually grew into a privately owned business with 18 locations in Colorado, Arizona and Texas.The company projects revenues of approximately $858 million in 2025, making it one of the largest privately held businesses in Colorado. Despite its size, it remains family-run rather than part of a large corporate chain.
Childhood experiences that shaped Jabs’s contributions
For Jabs, philanthropy is closely linked to his early life. He grew up as one of nine children on a farm near Lodge Grass, Montana, in a home that lacked basic modern amenities such as electricity and running water. Those experiences stayed with him as he pursued his career.He has spoken of seeing poverty at home and during his travels around the world. Those memories influenced the organizations they chose to support, especially those working to improve opportunities for people facing financial challenges.In a recent interview with CBS News, Jake Jobson said, “Growing up in poverty, I saw a lot of poverty,” he recalls. “I’ve traveled to 50 countries, and I’ve seen a lot of poverty, so I love doing charities and doing things that help people and get them out of poverty.”
How Jabs turned business success into community support
Last year alone, the Jabs reportedly donated over $1 million to charities across Colorado. His contributions have supported a wide variety of organizations, including groups involved in disaster relief, hospitals, veterans’ services, disability aid, food aid, and global health initiatives.He is also a longtime supporter of CBS Colorado’s Wednesday Children’s program, which helps children in foster care find permanent homes.Jabs states that effective charity requires relying on organizations that have experience and knowledge in the areas they serve. Rather than trying to manage every detail themselves, they have focused on support groups already working directly with communities.His approach has earned recognition beyond the business world. He received the American Red Cross Heroism Award and the Volunteers of America Good Samaritan Award, honors typically associated with those who have stepped forward during emergencies or provided direct community service.
How education became a major part of Jabs’ legacy
Some of the Jabs’ largest donations have been to education, particularly to programs designed to help future entrepreneurs.Fortune reported in 2011 that he donated $25 million to Montana State University’s College of Business. At the time, it was the largest private donation in the history of higher education in Montana. Contributions led to the creation of the Jake Jabs College of Business and Entrepreneurship and helped finance a new facility known as Jabs Hall.Two years later, he pledged another $10 million to the University of Colorado Denver Business School. That gift established the Jake Jabs Center for Entrepreneurship and became one of the largest donations the school has received at that time.For Jabs, supporting students is a personal affair. He often points to his background when explaining why education matters to him. He has said that he thinks about young people who come from similar circumstances to his and wants to provide opportunities that might otherwise be difficult to access.
95 year old CEO who continues to work with purpose
Even in the nineties, retirement has not been part of Jabs’s plans. He spends most of his week working at the American Furniture Warehouse.He has previously said that enjoying your work changes the way you look at it, but he also believes it is important to have a purpose. After building a multimillion-dollar company from a struggling furniture store, Jabs has spent the later chapters of his career focusing on how others can benefit from that success.