There’s no right time for a business to close and lay off all its employees, but an unexpected shutdown right before Christmas hits workers hard.
“Employers in the United States announced 71,321 layoffs in November,” according to an analysis by the outplacement firm Challenger, Gray & Christmas, marking a 24 percent year-over-year increase.
Challenger, Gray & Christmas is a long-standing workforce placement and analytics firm that has tracked US layoffs and employment trends for more than three decades and is frequently cited by economists, policymakers and major news organizations.
The practice of firing just before the holidays fell out of favor during the Great Recession, according to Andy Challenger, the company’s chief revenue officer.
“There was a tendency to announce layoff plans toward the end of the year to align with the end of most companies’ fiscal year. It became particularly unpopular after the Great Recession, and best practices dictated that layoff plans occur at times other than holidays,” Challenger wrote.
Sometimes, though, companies don’t have a choice, and employees at Circle Furniture, a New England chain that’s more than 70 years old, learned their company will be closing “Until further notice,” according to the company’s Web page Dec. 23.
That caused workers to have an unexpected layoff near Christmas Eve.]
“This is a concept conceived in the fire pits of HR and consulting hell. Anyone who has been through this experience would never do this to another human being,” wrote Kelly Smith, partner and principal consultant at creative and brand strategy agency Thinkhaus Idea Factory, on LinkedIn.
Circle Furniture employees were told about the store closings in a company-wide email on Dec. 19 and received another email on Dec. 23 revealing they were being laid off, according to a report from The Boston Globe.
“It is with a heavy heart that circumstances have been against the business and we can no longer afford to continue operations; therefore, all employees are being let go, including your position, effective December 23rd,” the layoff email read.
The company’s website noted the closure, but has the caveat that the closure may not be permanent.
Before Christmas 2025 – Employees were informed in a company-wide email that Circle Furniture will be closing all store locations “until further notice,” indicating major operational changes ahead, according to Furniture Today.
December 23, 2025: Employees received another email confirming layoffs effective Dec. 23, saying the company “can no longer afford to continue operations,” Patch reported.
End of December 2025 (around December 23-24): All eight Circle Furniture stores in Massachusetts and New Hampshire they were closed suddenlywith the official website stating “All Circle Furniture locations are CLOSED until further notice,” NBC Boston reported.
The Boston Globe reported that the furniture chain had about 65 employees. Companies with more than 50 employees are required to give 60 days’ notice before a mass layoff, but no record of Circle Furniture’s Worker Adjustment and Retraining Notification Act (WARN) appeared on the state website Tuesday.
Circle Furniture closed with very little warning to employees. Shutterstock
Founded as a family business in the early 1950s: Circle Furniture started as a family-owned retailer in Cambridge, Massachusettsstarted by members of the Tubman family, quickly establishing itself as a local home furnishings store. The business has grown from small beginnings in Putnam Circle (now Putnam Square) into a well-known regional furniture retailer, according to Furniture Today.
It spread to New England over the decades: Over nearly 70 years, Circle Furniture has expanded beyond the original store at multiple showroom locations in Massachusetts and New Hampshireincluding Boston’s Seaport District, Acton, Framingham, Cambridge, Hyannis, Middleton, Pembroke (MA) and Portsmouth (NH), Furniture Today added.
Family owned with a focus on quality and community: For much of its history, the company emphasized high quality furniture, craftsmanship and community involvement. It has acquired many products from local and American manufacturers and has positioned itself as a retailer of timeless, well-made home furnishings, the company shared on its website.
Growth through the mid-2000s and beyond: At various points in its history, Circle Furniture has continued to adapt and grow. For example, in 2004, the company opened a fifth Massachusetts store in Danvers, Massachusetts, expanding its showrooms to better serve customers in different regions of the state, according to Furniture Today.
Rebranding and property evolution: The business has retained its identity as a third generation family owned retailer and continued to operate showrooms in the Greater Boston area until its closure. The profiles show leadership and ownership evolving over time while maintaining Tubman’s legacy throughout most of his career, the Better Business Bureau reported.
While the chain has not filed for bankruptcy, workers may be owed back wages if it files or should be liquidated without a formal declaration.
“An employer who violates the WARN Act notification requirement is liable to each affected employee for an amount equal to back pay and benefits for the period of the violation up to 60 days.” according to the US Department of Labor.
Workers or a union can file an action in federal court to enforce their rights under WARN. The Department of Labor has no enforcement authority under WARN and does not investigate complaints or file lawsuits to enforce WARN.
There are three situations in which a company may not have to provide a WARN notice, according to the US Congress.
Tcompany’s adamant exception: Employers may grant reduced notice for plant closings, but not for mass layoffs, if they sought financing or business for their weakened businesses, believed they had a realistic chance of obtaining sufficient funds or new business to allow the facilities to remain open.
Unforeseeable Business Circumstances Exception: Employers may provide reduced notice if they could not have reasonably foreseen the business circumstances that caused the plant closings or mass layoffs.
Natural disaster exception: Employers may also provide reduced notice if the layoff is due to a natural disaster, such as a flood, earthquake, drought, or storm. If a factory closing or mass layoff is indirectly due to natural disasters, the exception would not apply; however, except for unforeseen business circumstances it could.
The employees did not expect the layoffs, although some knew the company was experiencing some difficulties, according to the Boston Globe.
“They had some financial difficulties that they were trying to sort out and sort out, but that’s all I know,” said Jonathan Boyle, who has been with the company for nearly 40 years. “It’s not a great situation.”
Circle Furniture did not return requests for comment from multiple media outlets.
American Signature Inc./Value City Furniture: Parent company of American Signature Furniture and Value City Furniture filed for Chapter 11 bankruptcy on November 22, 2025and announced plans to close several stores as part of its restructuring, Furniture Today reported.
Value City Furniture (Michigan locations): Following the Chapter 11 filing, more Value City Furniture stores in Michigan have closed or began liquidation sales as part of the restructuring process in late 2025, according to Here Detroit.
Home (home decor + furniture chain): Filed for Chapter 11 on June 16, 2025citing debt and industry pressures. During the bankruptcy proceedings, the chain identified several store closings (including six additional closures announced in July), Furniture Today reported.
American mattress: A regional furniture dealer who filed for Chapter 11 in mid-July 2025plans to close about 52 stores (primarily in Illinois and Indiana), though some locations in other states were to remain open, according to TheStreet.
Related: Popular women’s fashion retailer to close nearly 200 stores
This story was originally published by TheStreet on December 26, 2025, where it first appeared in the Retail section. Add TheStreet as a favorite source by clicking here.
