More than 3,000 people will lose their jobs when Family Christian shuts its 240 stores across America after 85 years of trading.
The company said sales had been falling for some time and after filing for bankruptcy in 2015 it had no choice but to close.
It has been operating as a not for profit company since that time, giving excess cash to charity.
"Despite improvements in product assortment and the store experience, sales continued to decline," said president Chuck Bengochea.
He said the board had "prayerfully looked at all possible options" and that they had trusted God's plan and decided to go into liquidation.
"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," said senior vice president Steve Biondo.