Family Christian Stores, the world’s largest retailer of Christian-themed merchandise, filed for Chapter 11 bankruptcy in February 2015. The fate of the chain is up in the air, with an Aug. 11 hearing set to determine whether a proposed deal would be approved. Until then, here is a rundown of PW’s coverage of the bankruptcy debacle.
Family Christian Stores Files for Bankruptcy
FCS filed for Chapter 11 bankruptcy and announced that it would use the bankruptcy proceedings to sell its assets to a new subsidiary formed by Family Christian Ministries on Feb. 12.
Questions Raised at First Hearing for Family Christian Stores
Christian publishers and other unsecured visitors such as Tyndale House, Rose Publishing, Moody Publishers and more attended the first bankruptcy hearing in Grand Rapids on Feb. 17. Publishers are among the unsecured creditors owed a total of $40 million by Family Christian Stores, while secured creditors include FC Special Funding, owed $24 million, and Credit Suisse, owed $34 million.
Family Christian Bankruptcy Felt by Authors, Agents
FCS’ bankruptcy filing had an effect on the Christian publishing world as publishers who were owed money by FCS tried to forestall their own financial hiccups. The problems then trickled down to authors and agents.
Family Christian to be Bought by Investors
FCS accepted the buy-out bid from FC Acquisitions.
No Decision Yet on Family Christian Deal
After a 24-hour hearing in federal bankruptcy court in early June, FCS still did not have a ruling on its sale to FC Acquisitions.
Sale Motion Denied in Family Christian Bankruptcy Case
A bankruptcy court denied the sale of FCS to FC Acquisitions. FCS then appealed to the bankruptcy judge to allow secured and unsecured creditors to vote on the sale.
Details of the FCS New Ownership Plan Emerge
An Asset Purchase Agreement (APA) filed in in U.S. Bankruptcy Court in Grand Rapids, Mich. revealed that all secured and unsecured vendors have until August 7 to object to the sale of FCS to FC Acquisitions. The APA also detailed specific amounts owed to publishers, vendors, and creditors as well as a plan for business after the sale, should it go through.