A Massachusetts-based furniture retailer, officially filed for Chapter 7 bankruptcy on January 30, 2026, following the closure of its nine stores in December 2025. The Acton-based company listed estimated assets of between $1 million and $10 million against estimated liabilities ranging from $10 million to $50 million, with between 200 and 999 creditors affected. Gross sales totaled $18.8 million in 2024 and declined to $15 million in 2025.
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Chapter 7 bankruptcy is a liquidation process in which a company's assets are sold to repay creditors, differing from Chapter 11, which allows businesses to reorganise without liquidating their assets. Employees were informed of the store closures through company-wide emails on December 19 and December 23, 2025, with layoffs taking effect immediately. Circle Furniture was founded in the early 1950s by the Tubman family in Cambridge, Massachusetts, and eventually expanded to nine stores across Massachusetts and New Hampshire. Ownership later transferred to Bob Richard in the early 2020s.
The filing lists numerous unsecured vendors and furniture suppliers, including American Leather, Norwalk Furniture, and Woodforms, among others. These nonpriority creditors will be repaid only after secured claims and customer deposits are addressed. The bankruptcy highlights the financial challenges faced by regional furniture retailers amid increased competition from online platforms and shifting market conditions, marking the end of an era for a company that had been operating for more than seven decades.
Source: www.furnituretoday.com
