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.
The closure of Freedom Furniture means the team of four staff will be looking for other jobs.
They have been informed all the way through, with several discussions, and have looked for options, Mr Trewavas said.
"We've got a great little team here."
Rotorua's Freedom Furniture has been around for about 10 years and Mr Trewavas said he had been the franchise owner for the same length of time.
While it will be sad to see it close: "I don't think Freedom Furniture will be lost to Rotorua forever."