Bible Factory Outlet (BFO) has been forced into Chapter 7 bankruptcy in the U.S. Bankruptcy Court of Northern Alabama.

According to court documents, BFO filed Chapter 11 on Feb. 9, listing assets of between $0 and $50,000, and liabilities of $1 million to $10 million. In a Chapter 11 proceeding, a debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

But then on Feb. 16, BFO's bank, Webster Business Credit Corporation of Boston and Connecticut, requested that the Chapter 11 filing be converted to a Chapter 7. The court approved the motion on Feb. 22, forcing BFO to close its remaining 24 stores, court documents show.

Based in Albertville, Ala., BFO was founded in 1995, opening 20 stores. After Bill Simmons became president in 1999, the company grew from 21 stores to 71 stores, with locations mostly in Southern states.

But then Simmons left BFO and joined Berean Christian Stores as vice president of merchandising and marketing in January 2005. Last year, the company was down to 55 stores and 31 more closed last fall, BFO officials said.

Read the full report on Bible Factory Outlet's Chapter 7 bankruptcy in the April 2 issue of Christian Retailing.

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