Christian Retailing

NEWSLETTERS Current Issue Family Christian finds ‘likeminded ownership’ in buyout
Family Christian finds ‘likeminded ownership’ in buyout PDF Print E-mail
Written by Christine D. Johnson   
Friday, 16 November 2012 12:17 PM EST

Family Christian Stores plans to give 100% of its profits to benefit Christian causes, mainly ministries serving widows and orphans, under the chain’s new ownership announced yesterday. The 280-store chain that employs about 4,000 people will continue its operations in a largely “seamless” way, said CEO Cliff Bartow.

In the buyout, Family’s management team partnered with a group of Atlanta-based Christian businessmen to acquire the company from its private equity owners. Terms of the transaction were not disclosed. 

Family Christian reported that while its ownership structure and financial purpose has changed, there will be no impact on core operations, stores or staff.

While the investors live in the Atlanta area, the chain will continue operating out of its Grand Rapids, Mich., base. The investment group includes Richard L. Jackson, founder and CEO of Jackson Healthcare, the nation’s third-largest health-care staffing company; Larry Powell, president of Powell Family Enterprises, a private equity investment company; and Michael Kendrick, founder of Blueprint for Life and Ministry Ventures, a nonprofit organization dedicated to launching new ministries.

“Each of these men have been blessed with professional success and share a mutual calling to give back to help those in need,” Bartow said. “This alignment of business acumen and Christian calling led them to the collective decision to join with us to acquire Family Christian and move it from an organization that contributes 10% of its profits to one that contributes 100% of its profits to faith-based charities and ministries.”

Private equity-owned since 1994, the company was founded in 1932. Family was “interested in getting off the private equity treadmill,” Bartow told Christian Retailing, so when he met the investors through his work with orphans, the option came to the fore. “We were looking for likeminded ownership,” he said.

Profits will be coursed through Family’s nonprofit James Fund. 

“It’s really important that the associates of Family Christian that are involved in these nonprofits to have the ability to direct and have a voice in where the money goes because it’s really important that money goes where you have some interest and activity,” said Jackson, now sole member of James Fund. 

“Literally we’ve touched millions of orphans’ lives over the last eight years,” Bartow added, “and we’ve given away about $7 million since its inception in 2004.”

Donating 100% of profits means that management still will be focused on how business is going.

“Since we’re giving 100% of our profits away, we want to invest our capital in ways that maximizes our ability to give in the future, and if that means spending capital on new stores, we’ll do that,” Bartow said. “If it means spending it on other things that can grow our revenues in better ways, then we would invest it in that fashion.”

 Family continues to be committed to its brick-and-mortar “lifestyle stores,” Bartow said, though e-commerce is also excelling. Customers will also find four new digital devices in its stores starting next week in time for the Christmas season. The company has partnered with Kobo to utilize its technology as a digital leader and has chosen to drop its recently introduced Edifi e-reader.

Family is opening two new stores today, one in the Philadelphia area, its first in that market, and another in St. Joseph, Mo. Another location will open in Tuscon, Ariz., in January.

 

In this current issue:

IVP to publish ‘one of the most important Christian artists of our day’

News image

InterVarsity Press (IVP) has announced the acquisition of three books...

READ MORE

WaterBrook Press to publish upcoming Rifqa Bary memoir

News image

Muslim-turned-Christian Rifqa Bary takes readers beyond the headlines of her...

READ MORE

U.S. retail sales pick up slightly in August

News image

Commerce Department figures announced Friday showed a 0.6% increase for...

READ MORE

‘Harbinger’ follow-up hits ‘New York Times’ list

News image

Jonathan Cahn’s The Mystery of the Shemitah (FrontLine) has charted simultaneously...

READ MORE

HCSB translation joins Blue Letter Bible site

News image

The full text of the Holman Christian Standard Bible (HCSB)...

READ MORE

Southern gospel event aims for record attendance

News image

Preparations are under way for the National Quartet Convention to...

READ MORE

CBA announces ICRS 2015 theme

News image

CBA has announced the 2015 International Christian Retail Show (ICRS)...

READ MORE

HarperCollins hires new Bible executive

News image

HarperCollins Christian Publishing (HCCP) announced Thursday that John Kramp will...

READ MORE

Southern Gospel Music Association announces Hall of Fame inductees

News image

The Southern Gospel Music Association (SGMA) announced the eight individuals...

READ MORE

Chick-fil-A founder and author Truett Cathy dies at 93

News image

S. Truett Cathy, Chick-fil-A founder and chairman emeritus, died at...

READ MORE

Harvest House apologetics author John Weldon dies at 66

News image

Harvest House Publishers author John Weldon died Saturday afternoon, Aug....

READ MORE

Willie Robertson joins ‘Left Behind’ production team

News image

Duck Dynasty star Willie Robertson will executive-produce Left Behind, the...

READ MORE
100%
-
+
0
Show options

a