There have been numerous articles about the Family
Christian Stores (FCS) Chapter 11 bankruptcy. It is upsetting that the largest chain store company in the U.S. has to
reorganize in order to stay in business. They owe $40 million dollars to Christian publishers & vendors. Apparently their total debt is $100 million. This chain was bought by a Christian company
that promised to give all of its profit to other ministries. Another strange part of this is that the
person who wants to buy the chain is already an owner, through a non-profit
company. The sale price is reputed to
be $78 Million of which only $28 million is cash.
Besides owing Christian Publishers $40 million in
invoices, the petition asks to keep the product brought in on consignment
without paying for it. That’s another
$20 million owed to Christian Publishers and Vendors.
I read an article about Barbour Publishing in
Uhrichsville, OH and it said that Barbour has laid off some of their employees
and that Tim Martins, President and CEO, stated that it was partly because of
the FCS Bankruptcy. Will this happen at
other publishers? I surely hope not, but
it could happen when FCS owes one company $7.5 million and another one $2
million. Plus, how many small companies
do they owe amounts like maybe $100,000 or $50,000. This could devastate a small business,
perhaps put them out of business. What will this do to the industry. I believe CBA publishing will survive, but
there will have to be adjustments in several areas. It will affect publishers and authors in an
already tough industry.
At the same time Family Christian Stores does not
plan to close any stores or lay off any employees. Will this only profit the owners of the
FCS? Will I want to buy my Christian
product at my local store anymore? I’m
a very good customer at my local store, have been for many years. I even received a gift one year for being a
top customer. I don’t know if I’ll feel
comfortable trading with them. This is
hurting the industry that I love.
3 comments:
It is interesting to look at the impact of this from a consumers viewpoint. I definitely am going to be hesitant shopping there knowing what I know. But I wonder if others will just continue shopping as is their usual habit?This is sure to have a ripple effect.
Thoughtful comments, Joyce. Our local Christian book store is independently owned, and I love going there for books and gifts. So glad the Lord has blessed the owner and allowed her to stay open. One of the ways she has done this is to offer much more than books in her store.
I certainly wish there were more independents like in Davalynn's area. But they went the way of the typewriter long ago. I'm so sad at the change happening.
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