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Its appetite for acquisitions prompted the Cincinnati-based retailer to buy 11 stores, including Provident Bookstores locations here and elsewhere.
But now that the economy has taken a turn for the worse, causing sales to tumble, those purchases — and the borrowing they required — have proven too hard to digest.
As a result, Berean last month filed for Chapter 11 bankruptcy reorganization.
It also has agreed to sell itself to a newly formed California-based company for $1.6 million, according to court documents.
However, all of Berean's 19 remaining stores continue to operate.
They include stores in New Holland and in Lancaster Shopping Center, although apparently the Lancaster store will be moving.
A spokeswoman for Federal Realty, the landlord for Lancaster Shopping Center, said Thursday that Berean will be closing Aug. 31, to accommodate the previously announced expansion of the adjoining Giant supermarket.
The shutdown will end 18 years of operation there by Berean and its predecessor, Provident, which previously had been on East King Street.
An employee at the Lancaster Shopping Center store said Berean will stay in business in the Lancaster area at a location to be determined.
Berean president and chief executive officer Bill Stillman on Thursday declined immediate comment on the fate of the Lancaster store or the size of its workforce.
However, according to newspaper records, the 15,100-square-foot store has about 35 employees. The 2,500-square-foot New Holland store, on Tower Road, has about five employees.
In court filings, Stillman said the bankruptcy was triggered by a recession-driven drop in sales, which followed an acquisition spree — including the 2006 Provident deal — that was funded by significant borrowing.
Berean's sales have fallen 20 percent so far this year, after dipping 6 percent last year.
In response, the company closed seven stores since last fall, but it still ended up defaulting on a $1.75 million loan.
Berean has agreed to sell itself to the California-based firm unless the firm's offer is surpassed in bidding overseen by the U.S. Bankruptcy Court this month.
Officials with the new firm, Berean Christian Stores Endeavor LLC, could not be reached for comment.
Berean, which opened its first store in 1934, said in its June 9 bankruptcy filing that it owes between $10 million and $50 million. Berean said its assets are between $1 million and $10 million.
E-mail: tmekeel@lnpnews.com
