A fixture of New England homes for decades is closing its chapter—literally. Circle Furniture files for bankruptcy, ending more than 70 years of operations with a Chapter 7 filing that signals full liquidation of the retailer’s assets.

The Acton, Massachusetts-based chain, which shuttered all nine of its stores in December, formally filed in the U.S. Bankruptcy Court for the District of Massachusetts on Jan. 30.

Financial Strains Behind the Curtain

According to court documents, Circle Furniture listed estimated assets between $1 million and $10 million, while liabilities soar from $10 million to $50 million, owed to an estimated 200 to 999 creditors. The company reported $15,043,178 in gross sales in 2025, down from $18,804,136 in 2024.

Chapter 7 bankruptcy, often called the “liquidation chapter,” allows a debtor’s estate to be sold off to satisfy claims under bankruptcy code rules. This contrasts with Chapter 11, or the “reorganization chapter,” which permits corporations to restructure without liquidating all assets.

The Sudden End for Employees

The closure blindsided staff in December. The Boston Globe reported employees first received notice via a companywide email on Dec. 19, followed by a second email on Dec. 23 detailing layoffs.

“With a heavy heart, circumstance [sic] have gone against the business, and we can no longer afford to continue operations, therefore all employees are being let go including your position effective Dec. 23,” the message read.

From Cambridge Roots to Regional Presence

Circle Furniture traces its origins to the early 1950s in Cambridge, Mass., founded by the Tubman family. The company expanded over the decades, eventually reaching nine locations in Massachusetts and New Hampshire. In the early 2020s, ownership transitioned to Bob Richard.

Creditors Await Payout

Among the creditors listed in the Chapter 7 filing are several furniture and home furnishing suppliers, as well as service providers. They are categorized as nonpriority unsecured creditors, meaning they stand behind secured claims and customer deposits in any distribution of remaining assets.

As Circle Furniture winds down its legacy, the story underscores the challenges even long-standing regional retailers face in an era of rising costs, online competition, and changing consumer habits.