After 12 years in business, Lotus Bleu is leaving Hayes Valley. The award-winning interior design firm, led by Jeannie Fraise, will remain intact in another location but the retail side of the business—which currently operates out of the 940-square-foot space at 325 Hayes St.—will need to liquidate all assets before its departure at the end of June. 

Despite owner Jeannie Fraise's love for the Hayes Valley, a rent increase and building maintenance led to the decision to depart the neighborhood. A newsletter recently sent out to Lotus Bleu subscribers stated that, "Unfortunately, we were handed a new lease that is exorbitant and unsustainable for this side of the business."

Over the last year, Fraise says she was negotiating a lease with her landlord that would raise rent at 325 Hayes St. by 20 percent. But recently, she was told that the price would double. "I didn't expect it," she said. "It became a good time for me to think about the retail side of the business. Doing both is a lot of work, so I decided it's better to focus on one thing." 

Fraise originally opened the retail side of the business in 2003 in a 280-square-feet railroad-style space that now acts as her home for interior design brainstorming, client meetings and mood boards. Next-door is the larger, 940-square-foot space (with separate entrance) that offers clients, fellow interior designers and shoppers a chance to pick up unique pieces from Fraise's travels (she often frequents Southeast Asia and France) or work with a team member to customize an original piece. 

The interior design side, along with two of the three Lotus Bleu staff members, will be joining Fraise in a new space that's near the Design Center. The new 1,000-square-foot space "brings a lot of people together from the artistic community," Fraise said. "It'll be neat to have a space with a communal area—it has that thing about San Francisco that we love."  

Lotus Bleu's custom work, said Fraise, will continue. In the past the team has worked on window treatments, reupholstery of vintage furniture and more, which will remain part of the business. Many collections like lighting, textile lines and bedding will also still be offered online and consultations. 

The two spaces at 325 Hayes St. were put on the market last week, with a Craigslist post promoting the 260-square-foot space's "high ceilings, abundant natural lighting" and "vintage building details" as selling points. The space, which has yet to secure a new tenant, is priced at $2,800 a month. The 930-square-foot space is also listed at Derose Appelbaum, and while it doesn't include a price it does say the lease is "negotiable."  

"The store has been a great advertisement for my style," Fraise said. "It's a very unique style with colorful, graphic patterns and mixing vintage pieces." Fraise originally started her interior design business in 2001, and opened up the shop two years later after a few successful trunk shows. The larger side of the business was originally a music store, then a book store, and Fraise took the shop over seven years ago.

We'll let you know when we hear what might be next for the space on Hayes' bustling retail corridor. In the meantime, stop by Lotus Bleu before the end of June for 30-50 percent off home decor inventory.