The nation’s largest Christian bookstore chain specializing in Bibles, books, music and church supplies has filed for Chapter 11 bankruptcy.
Family Christian Stores, the Grand Rapids, Michigan based non-profit company has 266 stores across 36 states. FCS employs around 4,000 employees. Corporate officials say that they don’t anticipate closing stores or laying off employees.
“We strive to serve God in all that we do and trust His guidance in all our decisions, especially this very important one,” stated FCS president and CEO Chuck Bengochea. “We have carefully and prayerfully considered every option. This action allows us to stay in business and continue to serve our customers, our associates, our vendors and charities around the world.”
FCS had bought itself back from private equity owners in 2012 with a pledge to donate 100 percent of profits to “widows and orphans.”
FCS released a statement regarding the restructuring:
Through a newly formed subsidiary, Family Christian Ministries will serve as the lead bidder for the Section 363 sale process, putting forward a plan that acquires the streamlined organization’s assets and maintains operation of the chain’s 267 stores in 36 states, as well as its e-commerce site www.familychristian.com. Family Christian Stores is asking the court for a schedule to complete the sale process in about 60 days.
After the judge approves the sale, we’ll be immediately cash-flow positive and profitable. This process is similar to the one taken by the automobile and airline industries in recent years. We see this as the start of a fresh new day for Family Christian Stores and look forward to delighting our customers for many years to come.
Among our next steps are to make various capital improvements to our stores, as well as invest in an expanded product line and implement a new retail strategy that will enable us to better serve our customers.
