“All of us at Tyndale House Publishers feel a sense of grief over Family Christian’s decision to close the entire chain of stores,” he stated. “Family’s millions of customers now have even fewer options for finding these wonderful, life-giving products. The entire Christian community—indeed the entire nation—will be poorer as a result of this pending closure.

More than two years ago, suppliers forgave Family Christian Stores $127 million in debt so that it could remain open. Today, the chain—which bills itself as “the world’s largest retailer of Christian-themed merchandise”—announced it is closing all of its stores after 85 years in business.

Family Christian, which employed more than 3,000 people in more than 240 stores across 36 states, blamed “changing consumer behavior and declining sales.”

“We had two very difficult years post-bankruptcy,” stated president Chuck Bengochea. “Despite improvements in product assortment and the store experience, sales continued to decline. In addition, we were not able to get the pricing and terms we needed from our vendors to successfully compete in the market.

“We have prayerfully looked at all possible options, trusting God’s plan for our organization,” he stated, “and the difficult decision to liquidate is our only recourse.”

Tyndale House Publishers chairman and CEO Mark Taylor called the stores “an important outlet for Christian books, gifts, and Bibles for many decades.”

“All of us at Tyndale House Publishers feel a sense of grief over Family Christian’s decision to close the entire chain of stores,” he stated. “Family’s millions of customers now have even fewer options for finding these wonderful, life-giving products. The entire Christian community—indeed the entire nation—will be poorer as a result of this pending closure.

“At the same time that we share our sense of loss, we express our appreciation to Chuck Bengochea and his staff who have worked so hard over the past few years to make the chain of stores succeed,” stated Taylor. “We will pray for the many Family employees who will lose their jobs.”

Family Christian’s financial problems weren’t new. In 2012, the chain bought itself back from private equity owners, and in 2013 promised to donate all profits to serving widows and orphans around the world. But only $300,000 was contributed to charities over the following two years, exhibiting how slim the margins were on the $450 million in gross sales the chain generated over the same period.

In 2015, Family Christian filed for bankruptcy. Despite $230 million in gross revenues in 2014, the retailer owed more than $90 million. Sales of $305 million in 2008 had steadily shrunk to a projected $216 million in 2015.

But 27 Christian publishers, including InterVarsity Press, Baker, Charisma Media, David C. Cook, and Abingdon Press, objected to the retailer’s restructuring plan, under which the chain would get to own $20 million worth of items bought on consignment “free and clear,” without paying the suppliers.

The Christian vendors also criticized the way the terms benefited Richard Jackson, who owned Family Christian, the first lienholder (FC Special Funding) in line to be paid with any proceeds, and the purchasing organization (FCS Acquisition).

The creditors claimed Jackson sought “to complete [his] scheme to own the Debtors for a mere $4 million in cash and reduce debt of the companies by over $90 million, by acquiring the Debtors—in 20 days.”

The creditors filed a lawsuit; in response, Family Christian pulled its proposal. The chain headed to auction, where three of the four bidders were liquidators. That dismayed the Christian suppliers even more.

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