Wednesday, July 23, 2008

Coppell-based Minyard’s to sell Carnival brand, 37 stores

By Pegasus News wire

COPPELL — Minyard Food Stores, Inc. today announced the agreement to sell its Carnival Super Market brand and 37 of its stores to a group led by The Grocers Supply Co., Inc. The group includes Houston-based retailer Fiesta Mart, Inc., and many of Grocers Supply’s local area retail grocer customers.

Photo not provided by Carnival, Minyard's

Many of Carnival's soon-to-be-fired associates were surprisingly upbeat about the news

“The upcoming acquisition is a validation of our concept and the success of our Carnival brand,” said President and CEO Michael D. Byars. “It proves what we’ve said all along about the growing power and influence of Hispanics in North Texas. Added to Fiesta’s 15 DFW stores, our Carnival brand and outlets will further establish a substantial Latino-themed retail presence throughout the Metroplex. Grocers Supply’s acquisition almost four years ago of Fiesta and, now, of our Carnival brand shows they understand the changing demographics of Texas and the attractiveness of this segment.”

“Plus, joining the Carnival brand with Fiesta Mart’s management will offer many of our associates an expanded career track with a larger Texas chain and continue to serve customers across the Metroplex with the international fresh foods they crave,” added Byars.

Grocers Supply entered into an agreement to purchase 23 Carnival supermarkets, five Minyard, five fuel centers and nine Sack’n Save warehouse stores from Minyard Food Stores. It is expected that Fiesta Mart will acquire 11 of these stores and other retail customers of Grocers Supply will acquire most of the remaining stores.

Minyard management also noted that while Carnival’s flagship concept and upgraded stores have performed well, the softening U.S. economy has affected the entire chain.

“The complexity of running three separate banners cost effectively in one market became more pronounced as our customer base was hit especially hard by the current downturn,” said Byars.

Although Minyard will transfer or terminate all of its store associates prior to the sale of each store, both Minyard and Grocers Supply expect the majority of the affected workers will be employed by the new store owners.

The company notified approximately 2,500 associates in its soon-to-be acquired stores and at corporate headquarters that they may be affected in 60 days. Minyard will offer job-search resources for the next 120 days for any displaced associates.

Source: Minyard Food Stores

Related stories

• Pegasus News Week in View: Hello Dolly edition (July 24, 2008)

See more stories in:

• Economics > Mergers & Acquisitions
• Grocery Stores