Having filed for Chapter 11 bankruptcy in February, Family Christian Stores (FCS), the USA’s largest chain of Christian retail stores, withdrew the application in March.
The application had caused uproar amongst many of FCS’s suppliers. A group of 27 Christian publishers filed a joint lawsuit against FCS to keep the retailer from selling their products at a future auction, demanding that the company either return consigned goods held at the chain’s 266 stores or pay them outright.
The list included such companies as InterVarsity Press, Baker, Charisma Media, David C. Cook, Abingdon Press, and others. Other publishers owed monies include HarperCollins ($7.5 million) and Tyndale House ($1.7 million) with Faithwords, Barbourt and B&H owed around $500,000 each.
FCS made the decision to sell approximately $20 million worth of consigned books, music, DVDs and church supplies at auction. Had they been allowed to sell the inventory, publishers would not have had the opportunity to recoup their money.
According to documents filed with a Michigan bankruptcy court in February, FCS owes $57 million to banks and another $40 milllion to publishers are vendors. FCS has approximately $107 million in liabilities. “Day-to-day operations at Family Christian Stores will continue as usual,” CEO Chuck Bengochea said in the statement.
March 3rd, 2015 - Posted & Written by Together Magazine