LifeWay Christian Stores’ closest competitor — Family Christian Stores — has announced it is closing after 85 years. This move comes after the Grand Rapids, Michigan-based company filed for bankruptcy protection two years ago.
Family Christian Stores employed more than 3,000 people in 240 retail sites across 36 states. It was considered the world’s largest retailer of Christian-themed merchandise. LifeWay comes in second with more than 170 stores.
“We had two very difficult years post-bankruptcy,” Family Christian Stores President Chuck Bengochea said in a statement. “Despite improvements in product assortment and the store experience, sales continued to decline.”
‘Trusting God’s plan’
He said the nonprofit company was not able to work out terms and pricing with its vendors that allowed it to compete in the market successfully. “We have prayerfully looked at all possible options, trusting God’s plan for our organization, and the difficult decision to liquidate is our only recourse.”
The company also was known for providing humanitarian aid. In a statement, the company said it had served more than 14 million widows, orphans and other oppressed people across the world.
At the time of the bankruptcy protection filing, Bengochea said the company “took on too much debt” because of declining sales and was hit by the 2008–2009 recession and the digital revolution that has changed the sales of books, movies and music.
In 2015, MLive Media Group reported the chain had $230 million in sales in 2014, down from $305 million in 2008. Publishers Weekly reported the chain had “assets of between $50 million and $100 million and liabilities in the same range.”
The magazine said creditors included prominent publishers such as HarperCollins Christian Publishing, which was owed $7.5 million.
Family Christian Stores was founded in the 1930s. In 2012 it was purchased by three businessmen and donated to Family Christian Ministries. (RNS)
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