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Gary Friedman joined the company from Williams-Sonoma in 2001 as Chief Executive Officer after being passed over for the CEO position at Williams-Sonoma by Howard Lester when Restoration Hardware’s sales were waning and the company was seeking additional capital. In 2005, Gordon left the company in order to take over as CEO of Robert Redford’s Sundance Catalog Company. In 2007, Sears Holdings Corporation announced the purchase of a 13. 7% share of Restoration Hardware, prompting speculation that Sears Holdings might attempt a full takeover. After the bursting of the United States housing bubble, the company was slated to close two stores in 2008 including the original store located in the heart of Old Town Eureka. , and open one in Canada. In June 2008, the company completed the transaction without Sears Holding, but instead with Catterton Partners.