In a somewhat surprising move, Family Christian Stores, the nation’s largest chain of Christian retail stores, filed a court notice withdrawing its motion of plans for bankruptcy. The company announced its plans this week through an official statement.

The move is surprising because FCS’ strategy for filing bankruptcy centered around completing an asset sale pursuant to Section 363 of the bankruptcy code.

“The stewards of the ministry have done this out of love for the mission of [FCS],” said Family Christian Stores CEO Chuck Bengochea. “We believe that this will help to satisfy certain objections of the Creditors Committee and the U.S. Trustees. This action will lead more quickly to a successful outcome in which we can continue to serve our customers and glorify God.”

The filing under Section 363 ran into a few barriers, however.

A group of 27 Christian publishers had filed a joint lawsuit against Family Christian last week to keep the retailer from selling their products at a future auction. Publishers are demanding that the company either return consigned goods held at the chain’s 266 stores or pay them outright.

Family Christian had recently made the decision to sell approximately $20 million worth of consigned books, music, DVDs and church supplies at an auction scheduled later in 2015. Had Family Christian 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, Family Christian Stores owes $57 million to banks and another $40 milllion to publishers are vendors. FCS has approximately $107 million in liabilities.

FCS can still seek Chapter 11 bankruptcy, only not through Section 363, where only the bankruptcy court judge has to approve the sale of the business.

Family Christian Stores initially stated that it “does not expect” to close any of its stores nationwide or to lay off any of its nearly 4,000 employees.

"Day-to-day operations at Family Christian Stores will continue as usual," Bengochea said in the statement.

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