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Circle Furniture Files for Chapter 7 Bankruptcy After Pre-Christmas Closures

The Chapter 7 filing shows $13.7 million owed against roughly $2.3 million in assets.

Overview

  • Court papers indicate a liquidation plan, with inventory valued near $2 million and total assets estimated at about $2.3 million.
  • The filing includes a list of hundreds of customers who paid deposits, while bank account summaries report only minimal cash.
  • Circle reports about $6.8 million in secured claims and $6.8 million in unsecured claims, putting many customers and vendors at risk of little to no recovery.
  • The company retained Madoff & Khoury LLP for the case, and attempts to reach owner Robert Richard have not been successful.
  • Stores closed without notice on Dec. 23 in Massachusetts and Portsmouth, N.H., and employees were later laid off, with some filing wage complaints to the Massachusetts attorney general.