|Family Christian Stores restructures under Chapter 11
|Written by Steve Biondo
|Thursday, 12 February 2015 08:30 AM America/New_York
Family Christian Stores has filed for a sale of its assets and operations under Chapter 11 of the U.S. Bankruptcy Code. However, the good news for customers and employees is that the company does not expect to close any stores or lay off any employees during its restructuring plans.
“We strive to serve God in all that we do and trust His guidance in all our decisions, especially this very important one,” said Chuck Bengochea, who was named president and CEO of Family Christian Stores in July 2014. “We have carefully and prayerfully considered every option. This action allows us to stay in business and continue to serve our customers, our associates, our vendors and charities around the world.”
Family Christian Stores was purchased in 2012 by three businessmen and donated to Family Christian Ministries, a not-for-profit 501c3. Family Christian Stores operates in support of Family Christian Ministries’ mission partners and has a long history of giving to ministries serving widows and orphans.
A newly formed subsidiary of Family Christian Ministries will serve as the lead bidder for the Section 363 sale process. It will acquire the streamlined organization’s assets and maintain operation of Family Christian Stores’ 266 stores in 36 states, as well as its e-commerce site familychristian.com. Family Christian Stores is expecting to complete the sale process in about 60 days.
“Our customers will not see any change in operations during this process. After the court approves the sale, we can begin to reinvest in our stores and bring our customers products and services that will help us better fulfill our mission—to glorify God by helping people find, grow, share and celebrate their faith in Christ,” Bengochea said.
Family Christian Ministries also owns two other companies—iDisciple, an online source for Christian inspiration, messages, sermons and music; and Giving Films, a movie production company developing Christian movies. These two companies are not part of the restructuring and will continue to operate independently of Family Christian Stores.
For Bengochea's more detailed explanation of Family Christian's decision to file Chapter 11, see this video at fcsnewday.com.