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Publishers file joint lawsuit against Family Christian Print Email
Written by Christian Retailing   
Thursday, 12 March 2015 04:00 PM America/New_York

FamilyChristian-Stores-Logo-webA group of 27 Christian publishers has filed a joint lawsuit against Family Christian—who filed for bankruptcy in February—to keep the retailer from selling their products at a future auction.

According to Katy Stech of bankruptcynews.com, publishers are demanding that the company either return consigned goods held at the chain’s 266 stores or pay them outright. Family Christian 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.

If Family Christian is allowed to sell the inventory at an auction, publishers will not have the opportunity to recoup their money.

A number of well-known Christian publishers are owed a substantial amount of money by Family Christian, including HarperCollins Christian Publishing, Tyndale House Publishers, Baker Publishing Group, B&H Publishing Group, Barbour Publishing, Crossway and Harvest House Publishers. Court documents reveal that the company owes banks and vendors about $97 million, excluding the consignment inventory.

Grand Rapids, Michgan-based Family Christian has 266 stores across 36 states. The bankruptcy has left its more than 3,000 employees wondering whether or not they will have jobs in the future.