MILAN — Akin to the world of high-end fashion, the furniture industry battles its own challenges in resolving creative and corporate disputes. Arhaus, the high-end furniture company founded in Ohio, is suing RH, formerly known as Restoration Hardware, and its co-chief merchandising and creative officer Lisa Chi over alleged traded secrets.

A civil complaint filed on July 24 to the U.S. District Court for the Northern District of California and obtained by WWD alleges Chi violated a confidentiality agreement signed in 2022 and shared proprietary information with Corte Madera, Calif.-based RH upon being hired in 2025.

The documents detailed that during Chi’s tenure as chief merchandising officer, she had access to Arhaus’ trade secrets and proprietary and confidential information and routinely sent confidential documents like its four-year plan — which included information regarding sales, inventory and strategy — to her personal email account, as well as other Google storage devices, the complaint said, adding that she and RH chief executive officer Gary Friedman discussed confidential information.

“As part of her preparations to leave Arhaus and join RH, Chi met with RH’s CEO, Gary Friedman, for several hours to discuss Chi joining RH, one of Arhaus’ primary competitors. On information and belief, Chi and Friedman discussed the trade secrets and or confidential information belonging to Arhaus that Chi could bring with her to RH and utilize for the benefit of RH,” the complaint stated, adding that, over time, RH’s products and marketing materials have begun to resemble and replicate Arhaus’ products and marketing materials, including their product styles, collection selection, lifestyle imagery and catalogue.

Both Arhaus and RH were contacted by WWD and said they were not able to provide a comment.

In May, it was announced that Chi was hired by RH and stepped into the role of president, co-chief merchandising and creative officer. In this role, Chi currently reports to Friedman and co-leads product development, merchandising, inventory planning, sourcing, manufacturing and marketing. Before joining Arhaus in 2021, she had previously worked at RH.

The complaint seeks damages and compensation for legal fees and that the trade secrets and other confidential information be returned to Arhaus. It also compels the court to place Chi in a position at RH in which she cannot utilize Arhaus’ trade secrets and confidential information. They also request the court require the defendants to confirm, via a qualified third-party auditing, that all of Arhaus’ trade secrets and confidential information have been removed from Chi’s electronic mail and storage accounts.

Disputes like these are not uncommon in the world of furniture and home.

In 2017, RH filed a similar complaint against Crate and Barrel, according to press reports, claiming the competitor, its CEO and another employee used RH trade secrets to revitalize its business.

The two companies are among the largest in the upscale furniture sector. Italy’s Pambianco Consulting division ranks RH as the second largest maker of high-end furniture, by sales, in the world. It posted $3.03 billion in sales in 2024. Arhaus ranks number four with $1.27 billion in sales in 2024.

Focused on becoming the leading American luxury furniture and design brand, RH has been on a mission to enhance its designs with a global network of creatives and open design galleries in strategic locations worldwide. Its Paris opening will take place in September during the Maison&Objet design trade show. Other locations are planned for London and Milan in 2026.