(GRAND RAPIDS, MI) Family Christian Stores, the nation’s largest Christian bookstore and gift chain, has filed for Chapter 11 bankruptcy in hopes of restructuring its debt in the face of declining sales.
The Grand Rapids-based chain said it does not expect to close any of its 266 stores in 36 states or layoff any of its 3,100 full-time and part-time employees.
“We strive to serve God in all that we do and trust his guidance in all our decisions, especially this very important one,” said President and CEO Chuck Bengochea in a news release.
“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.”
Family Christian Stores‘ sales “have been in a steady decline since 2008,” according to the petition filed this week in U.S. Bankruptcy Court.
The company’s annual sales have fallen from $305 million in 2008 to $230 million in 2014, according to its petition. The company predicted its 2015 sales would fall to $216 million.
The chain’s roots go back to 1931, when brothers Pat and Bernie Zondervan began a publishing house in their family’s Grandville farmhouse.
Zondervan Corp. grew to become the nation’s largest Christian publishing house. The bookstores were spun off in 1990s when Harper Collins purchased the publishing house.
According to its bankruptcy petition, Family Christian Stores owes $24 million in a revolving loan and $34 million in a term loan used to acquire the chain by a group of Atlanta-based investors in 2012.
The new owners pledged to donate the company’s profits to Family Christian Ministries, a not-for-profit agency that supports several Christian charities and mission groups.
The Chapter 11 bankruptcy plan would sell the chain to a newly formed subsidiary of Family Christian Ministries that will acquire the streamlined organization’s assets and maintain operation of Family Christian Stores’ 266 stores in 36 states, as well as its e-commerce site, www.familychristian.com, according to the news release.
The proposed plan would allow Family Christian Stores “to continue operating as a non-profit, charitable organization dedicated to the sharing and promoting of the Christian message and lifestyle, supporting charitable causes and missionary goals,” the petition said.
Family Christian said it hopes to complete the restructuring within 60 days. U.S. Bankruptcy Judge John T. Gregg will conduct an initial hearing on the petition next Tuesday.
“Our customers will not see any change in operations during this process,” Bengochea said in the news release. ” After the court approves the sale, we can begin to reinvest in our stores and bring our customers products and services that will help us better fulfill our mission – to glorify God by helping people find, grow, share and celebrate their faith in Christ,”
Family Christian Ministries also owns two other companies – iDisciple, an online source for Christian inspiration, messages, sermons and music; and Giving Films, a movie production company developing Christian movies.
These two companies are not part of the restructuring plan and will continue to operate independently of Family Christian Stores, the company said.
http://govtslaves.info/nations-largest-christian-bookstore-gift-chain-files-chapter-11-bankruptcy-protection/
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