UPDATE: Family Christian Stores plans to complete layoffs, shut down in April

GRAND RAPIDS, MI - Family Christian Stores, the nation's largest chain of Christian book and merchandise stores, announced it will close its doors after 85 years in business.

The announcement on Thursday, Feb. 23, did not specify a timetable for the liquidation, which will affect more than 3,000 employees at more than 240 stores in 36 states.

In 2015, Family Christian shed about $127 million worth of debt to its suppliers, creditors and consignment vendors when it went through Chapter 11 bankruptcy and was sold for about $55 million.

"We had two very difficult years post-bankruptcy," said company president Chuck Bengochea in a news release, that blamed changing consumer habits and declining sales for the decision.

"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, and the difficult decision to liquidate is our only recourse."

Family Christian Stores converted from a for-profit business model to a non-profit company designed to send all of its profits to Family Christian Ministries in 2012 after a group headed by Richard Jackson, a wealthy Atlanta businessman, formed a group to buy the chain.

"At its core, Family Christian is an organization with a heart for service," said Steve Biondo, Senior Vice President of Human Resources and Organizational Development in a statement.

"We are grateful for all of the millions of lives that have been impacted thanks to our guests and employees heart for bringing the light of Jesus to the darkest corners of our world. Through their efforts there is no question we have transformed lives now and for eternity," Biondo said.

Family Christian's roots go back to 1931, when brothers Pat and Bernie Zondervan began a publishing house in their family's Grandville farmhouse. Zondervan Corp. grew to become the nation's largest Christian publishing house.

Zondervan's bookstores were spun off in 1990s into Family Christian Stores after Harper Collins purchased the publishing house, which has since been merged with Nashville-based Thomas Nelson.

"Family Christian has left a powerful legacy of helping people find, grow, share and celebrate their faith in Jesus Christ. Today and always, we are grateful to God for the privilege of serving Him and look forward to finishing strong for His name's sake," Bengochea said.