Family Christian Stores Withdraws Bankruptcy Plan

Christianity Today ^ | 3/17/15 | Sarah Eekhoff Zylstra

[PAR35]

The nation's largest chain of Christian retail stores has withdrawn its controversial bankruptcy plan, according to a court filing yesterday.

The decision by Family Christian Stores (FCS) comes after dozens of Christian publishers sued the ministry over $20 million of consignment inventory, and both the US Trustee and creditors committee objected to how the sale plan would allegedly benefit one of FCS' owners.

[PAR35]

The original plan was to sell everything to the current owner for about $4 million in cash. Competing bidders would have to put up more that $50 million in cash. (A deal inspired by the GM bankruptcy, apparently). He also tried to push it through in a hurry before the creditors could get organized.

In addition, the company would keep about $20 million in inventory held on consignment, and pay the owners nothing - in addition to the money already owed to the publishers and suppliers.

A couple of the publishers are on really thin ice at this point. Most of the publishers finally got together and objected to the plan, as did the United States Trustee's office, and now the owner has pulled that plan to try something else.

[OneWingedShark]

Now re-read the story replacing FCS with Future Combat Systems... :)