Freedom Furniture and Homewares Rotorua is set to close at the end of April.
Franchise owner Paul Trewavas said their lease expiry date was coming up and the building had been purchased by Tony Bradley of TPB Properties from the previous owner.
The building will be redeveloped into upmarket office space, as reported in the Rotorua Daily Post on Saturday, he said.
Mr Trewavas said he had been looking around for a new building but had not found one yet.
The staff have "accepted the fact they will close", and if another building is found in due course they will look seriously at it, he said.