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St Stephen the Great files for bankruptcy

13.06.08 Graeme Neill

The Charity Commission is to investigate US orthodox Christian charity St Stephen the Great (SSG) after it filed for Chapter 11 bankruptcy last week.

SSG LLC, which runs the 20 former SPCK bookshops in the UK, told staff and suppliers in an email last Friday that it had filed for protection from its creditors under Chapter 11 of the US Bankruptcy Code in Houston, Texas. Chapter 11 is a form of bankruptcy that allows a business to continue trading and pay creditors over time.

“The bookshops will now be operated by ENC Management Company,” said SSG chairman Mark Brewer in the email. “Former employees . . . are invited to apply for a position with ENC Management Company.” ENC Shop Management is listed at Companies House as having the same directors as SSG: ­brothers Mark and Phil Brewer.

The bankruptcy has caused dismay among staff, unions and publishers. A spokesman for the Charity Commission said: “We are currently considering whether this raises any issues for the Charity Commission to take forward.” A spokeswoman for shop workers union Usdaw said it was continuing to represent 15 members of staff who are taking the Brewers to tribunal over contractual issues. She added that Usdaw was also examining what effect the bankruptcy would have on the UK business, and the “validity” of staff having to reapply for their jobs with ENC. “We are concerned that it will have the effect of moving the assets to a place which means that there are no assets available to settle the [tribunal] claims.”

Jean Witnall, sales and trade marketing manager at Hodder Faith, said Hodder was not currently trading with SSG. “It seems most unlikely there will be any business going forward,” she said. “It has been quite difficult to deal with SSG while they were going through their difficulties, so publishers have looked for other routes to market.”

When contacted twice, Mark Brewer refused to comment, saying: “I am not able to give any interviews or answer any questions.”

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