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In 1975, Jake Jabs took the bold decision to make an $80,000 investment, which later led to the emergence of a multimillion-dollar company from a weak furniture business. The 95-year-old founder and chief executive officer of the American Furniture Warehouse took over the struggling company when it was just on the brink of going bankrupt and invested decades building up the company with the help of affordability, efficiency, and a customer-oriented approach.
Fortune reports that by the year 2025, the struggle that started as a business challenge ended up as an $858 million firm operating in several states of the western USA.Apart from being a successful retailer, Jabs has also made a reputation for himself through his philanthropic contributions towards charities, universities, and community programmes.
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 with about $1.5 million worth of assets, but it was also facing bankruptcy and needed someone willing to rebuild it.Jabs took on the challenge of reshaping the business, focusing on low prices, efficient operations, and reaching customers who wanted affordable furniture. Over the following decades, the company expanded throughout the western United States. American Furniture Warehouse eventually grew into a privately owned business with 18 locations across Colorado, Arizona, and Texas.
The company reported around $858 million in revenue in 2025, placing it among the largest privately held businesses in Colorado. Despite its size, it has remained family-operated rather than becoming part of a larger corporate chain.
The childhood experiences that shaped Jabs’ giving
For Jabs, philanthropy is closely connected to his early life. He grew up as one of nine children on a farm near Lodge Grass, Montana, in a household that lacked basic modern conveniences such as electricity and running water.
Those experiences stayed with him as he built his career.He has spoken about seeing poverty both at home and during his travels around the world. Those memories influenced the organisations he chose to support, particularly those working to improve opportunities for people facing financial challenges.In a recent interview with CBS News, Jake Jabs said, "Growing up poor, I saw a lot of poverty," he recalls. "I've traveled to 50 countries, and I see a lot of poverty, so I like to give to charity and things that help people and live them out of poverty."
How Jabs turned business success into community support
Reportedly, in the past year alone, Jabs donated more than $1 million to charities across Colorado. His contributions have supported a wide range of organisations, including groups involved in disaster relief, hospitals, veterans’ services, disability support, food assistance, and global health initiatives.He has also been a longtime supporter of CBS Colorado’s Wednesday’s Child programme, which helps children in foster care find permanent homes.Jabs has said that effective giving requires trusting organisations with experience and knowledge in the areas they serve. Rather than trying to manage every detail himself, he has focused on supporting 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, honours usually associated with people who have stepped forward during emergencies or provided direct community service.
How education became a major part of Jabs’ legacy
Some of Jabs’ largest donations have gone towards education, particularly programmes designed to help future entrepreneurs.Fortune reported in 2011 that he donated $25 million to Montana State University’s business college. At the time, it was the largest private donation in the history of higher education in Montana. The contribution led to the creation of the Jake Jabs College of Business & Entrepreneurship and helped fund 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 had received at that point.For Jabs, supporting students has a personal connection. He often points to his own background when explaining why education matters to him. He has said he thinks about young people who may come from circumstances similar to his own and wants to provide opportunities that might otherwise be difficult to reach.
The 95-year-old CEO who continues to work with purpose
Even in his nineties, retirement has not been part of Jabs’ plans. He continues to spend much of his week working at American Furniture Warehouse.He has previously said that enjoying your work changes the way you view it, but he also believes having a purpose is important. After building a business from a struggling furniture store into a multimillion-dollar company, Jabs has spent the later chapters of his career focusing on how that success can benefit others.
