An Erie-based store that served churches and religious communities for 62 years has closed and filed for Chapter 7 bankruptcy liquidation.

The demise of the family-owned Hofmann's Church and Religious Goods Inc. leaves a void in northwestern Pennsylvania for the purchase of Bibles, candles, chalices, Communion wafers and other liturgical goods instrumental for the operations of houses of worship.

Hofmann's, at 420 E. 26th St., filed for Chapter 7 in U.S. Bankruptcy Court in Erie on Oct. 20. Also in October, the business, founded in 1960, posted signs on its windows that it is closed "until further notice."

Julie Hofmann, a co-owner of the store, referred questions to the business' bankruptcy lawyer, Tina Fryling.

Fryling said Hofmann's never recovered from the pandemic and also struggled through the downturn in the economy in general.

"It is closed permanently, and basically it is due to the economy and COVID," Fryling said.

Before it closed, the store was down to three employees, including Julie Hofmann and her husband, Patrick Hofmann, the other co-owner. It had as many as 13 employees 10 years ago, when Patrick and Julie Hofmann bought the East 26th Street building from Patrick Hofmann's parents, who founded the business.

Under Chapter 7 bankruptcy, a trustee oversees the sale of the business' assets — a liquidation — to pay its creditors. Chapter 7 is unlike Chapter 11 bankruptcy, in which a business reorganizes its debts to stay in operation and pay its creditors over time.

In recent weeks prior to the closing, the staff at Hofmann's was referring some callers to fill their needs with other vendors on the internet.

That's where many parishes will likely turn now, Erie Catholic Bishop Lawrence T. Persico said.

"It is always difficult to see a business close in Erie, I can’t help but think of the employees who are affected," Persico said in a statement.

"Parishes have depended on Hofmann’s for generations, and they always offered very good service. Their closing, unfortunately, is another sign of the times," Persico said. "There are a number of online options for religious and liturgical goods, so the needs of our parishes will still be met. But it will be an adjustment to no longer have this in-person resource available."

Hofmann's creditors include suppliers of religious goods

The president of Hofmann's, Patrick Hofmann, son of the founders, filed for bankruptcy on behalf of the company. Patrick Hofmann and Julie Hofmann, the store's vice president, each own 49% of the business, according to the bankruptcy records. Another person, listed as the secretary, owns 2%.

The bankruptcy filing lists the business' liabilities at $517,070 and the value of its property, including its inventory, at $125,107. The initial bankruptcy filing listed the East 26th Street building, just east of Parade Street, as part of the overall property and valued it at $275,000, boosting the total value of the assets to $387,933. However, an amended filing removed the building as an asset because it is owned by Patrick and Julie Hofmann as individuals and not their corporation.

The bankruptcy filing lists about 50 creditors, whose claims vary widely. Several of the creditors are religious-related businesses. They include Cathedral Candle, of Syracuse, New York, owed $7,687, and Greetings of Faith, of Mineola, New York, owed $1,695.

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One of the largest creditors is Citizens Bank, which is owed $182,000 for a commercial loan. The Hofmanns are also creditors, owed a total of $188,605 for a loan they made to the business as shareholders, according to the bankruptcy records. That loan indicates the extent to which the Hofmanns used their own money to try to keep their business viable.

All the creditors have unsecured claims but one — GMC Finance, which holds a lease on an SUV valued at $30,000, according to the filings. Though GMC could repossess the vehicle, the unsecured creditors have no collateral to help secure repayment.

The bankruptcy filing estimates that "no funds will be available to unsecured creditors" after the bankruptcy estate pays any administrative expenses, or costs that arise after the filing of the bankruptcy petition. Administrative claims have the highest priority among claims in bankruptcy.

The Chapter 7 trustee assigned to the Hofmann's bankruptcy is Erie lawyer John Melaragno, who regularly handles bankruptcy cases as a trustee. Bankruptcy trustees work for the United States Trustee Program, the section of the U.S. Department of Justice that oversees the administration of bankruptcy cases.

Pittsburgh-based U.S. Bankruptcy Judge Carlotta Bohm is assigned the case and has ultimate authority over the disposition of the bankruptcy.

U.S. Bankruptcy Court in Erie is a division of U.S. Bankruptcy Court for the Western District of Pennsylvania, based in Pittsburgh. The district's Erie-based bankruptcy judge, Thomas P. Agresti, whose courtroom is at the federal courthouse in Erie, is retiring and is easing out of taking new cases.

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The first scheduled event in the Hofmann's case is a Dec. 2 meeting via telephone between Melaragno, Fryling and the creditors, according to court records.

The owners had origins in making homemade rosaries

The founders of Hofmann's were Erie natives Fran and Dick Hofmann, Patrick Hofmann's parents. Fran Hofmann died at 85 in 2017. Dick Hofmann died at 88 in 2019, eight years after he retired from Hofmann's.

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The family business originated after the Hofmanns were married and when they were living in Alaska, where Richard Hofmann was stationed during the Korean War.

"It was in Alaska that their hobby of making rosaries to send home as gifts became the genesis of the business they later established, worked and built together for more than 50 years," according to Dick Hofmann's obituary.

The Hofmanns opened a "small religious gift shop" in Erie in 1960 at East 28th and German streets, selling religious cards, rosaries and statues and general gift items, according to the business' website. The store was first called Richard's Gifts, then FM Hofmann Religious Gifts and finally Hofmann's Church and Religious Goods Inc.

Customer demand led Hofmann's to expand its product line to include "all facets of products and services for liturgical worshiping communities as well as a broad array of unique gift ideas, beautiful jewelry and a huge selection of religious books, Bibles and music," according to the website.

Hofmann's incorporated in 1978, moved to East 26th Street and adopted shared ownership with the parents and their two children: Patrick Hofmann and Jacquie Hofmann. Jacquie Hofmann left the business in 2004, when she was president and general manager.

Patrick and Julie Hofmann bought the East 26th Street building from Fran and Dick Hofmann in November 2011, according to Erie County property records.

The store filled 'a very unique niche" in Erie

For Anne-Marie Welsh, spokeswoman for the Catholic Diocese of Erie, the closing of Hofmann's is a personal loss for her as a customer — and a loss to the region's religious communities and organizations.

"I do feel bad. I hate to see any business close, and this is a very unique niche," Welsh said.

Hofmann's absence could leave many churches throughout the region and beyond scrambling to find a new supplier for a wide range of goods commonly found in churches but not available from mainstream retailers. The items included vestments, candle wax and special cleaners that remove red wine stains.

"Parishes could buy everything from candles and communion host to statues and books," Welsh said. "They were very good about ordering things. They had samples and had many catalogs that were available."

Contact Jim Martin at jmartin@timesnews.com.

Contact Ed Palattella at epalattella@timesnews.com. Follow him on Twitter @ETNpalattella.

This article originally appeared on Erie Times-News: Hofmann Church & Religious Goods in Erie closes