Family Christian Stores, the largest Christian retail chain which includes seven stores in Alabama, filed for bankruptcy, seeking to restructure so it can keep its more than 260 stores open.
Chuck Bengochea, president and CEO, said the Grand Rapids, Mich.-based company “took on too much debt” due to declining sales and was hit by the 2008–2009 recession and the digital revolution that has changed the sales of books, movies and music.
“I wish that we had alternatives but we do not,” Bengochea said in mid-February.
On Feb. 17, Bankruptcy Court Judge John T. Gregg in Grand Rapids ruled the company could continue to function during the Chapter 11 bankruptcy process using money it receives from its operations, according to senior vice president Steve Biondo.
No planned layoffs
MLive Media Group reported that the chain, which has stores in 36 states, had $230 million in sales in 2014, down from $305 million in 2008. Family Christian Stores said it does not plan to close any stores or lay off any of its more than 3,200 full- and part-time employees during the restructuring.
“We made the decision after much prayerful consideration and only after working to cut costs and taking other steps,” according to its website.
Founded in the 1930s, Family Christian Stores owns two other companies: iDisciple, an app with sermons and music, and the Christian movie production company Giving Films. Those two companies operate independently of the chain of stores and are not part of the restructuring plans.
The closest competitor to Family Christian Stores is LifeWay Christian Stores, with more than 180 stores.
(RNS)
Share with others: