Thinking Out Loud

June 2, 2017

Massive Losses for Christian Publishers after Family Christian Closing

Filed under: Christianity — Tags: , — paulthinkingoutloud @ 8:42 am

In a presumably recent article dated “June 10th, 2017” World Magazine recounts the end of the Family Christian Bookstores closing in this article:

The news earlier this year that Family Christian Stores would close its more than 240 retail shops startled many of its customers. But it didn’t surprise anyone familiar with the company’s recent history. Despite receiving forgiveness for more than $80 million in debt two years ago, the company still couldn’t pay all of its bills.

The article later goes on to say:

Family Christian lost about $16.6 million over about 17 months during the bankruptcy, according to court documents.

That’s a million per month. The story continues:

In February Family Christian representatives called both Baker and Tyndale publishing groups. Lewis said they asked Baker Publishing for more time to pay invoices and for a 15 percent price discount, and Baker said yes.

But others, including Tyndale, had gone as far as they could to help the struggling retailer. “They asked us for humongous increases in the discount at which we were selling to them, and we just said, no, we’ve already given you our best deal,” Tyndale CEO Mark Taylor said…

…“This is the second time in three years that we’ve taken a big hit in bad debts because of Family,” Taylor said. (He declined to name the dollar amount of Tyndale’s loss.) Lewis said Baker Publishing expected to lose between $350,000 and $400,000.

Basically, Christian publishers bailed out Family not once, but twice.

Furthermore, the article doesn’t mention that most of those same publishers — in 2016, the year in-between the two crises at Family — took similar losses on the closing of Send the Light Distribution. Nor does it mention the many write-offs which a part of everyday commerce in dealing with individual bookstores that have closed in the Amazon era.

In this writer’s opinion, those losses might be represented by authors who were never signed, books that were never fully marketed, and development of new projects that were possibly curtailed. It’s entirely possible that publishing company staff were let go in belt-tightening at these various companies.

It’s a big loss for everyone. Could it have been avoided?

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