A Leon's outlet in Halifax said it fired two employees after a black statuette was found hanging in a window.
The faux lynching was the final straw for Elsworth Bottomley, a black employee at the store. He quit and filed a complaint to the province's human rights commission.
"This was one of many instances I've had at the store, but this was the most intense," Bottomley told the Halifax Chronicle-Herald newspaper Wednesday.
"I decided enough was enough."
A board of inquiry at the commission is already hearing a racism complaint from a former Leon's employee, Garnetta Cromwell, who alleges that while employed at Leon's Furniture, her manager made "racially charged comments and innuendoes" that targeted her and her race.
She quit her job in 2008.
In a statement Wednesday, Leon's said it "regrets the incident and apologizes to anyone who was witness to it."