Fiesta parent purchasing Carnival stores from Minyard

Minyard Food Stores Inc. has announced it will sell 37 stores and its Hispanic-focused Carnival brand to its chief Hispanic grocer competition.

HoustonÂ’s Grocer Supply Co., the parent company of Fiesta Mart Inc., will acquire the stores, ending a heated battle in the Hispanic niche grocery industry.

“The upcoming acquisition is a validation of our concept and the success of our Carnival brand,” Minyard CEO Michael Byars said in a company release. “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.”

Minyard, started in Dallas by the Minyard family in the 1930s, was sold by the family three years ago to a Texas-based private investment group. It operates 66 stores, including 25 under the Carnival banner – five of which are in Fort Worth, 22 conventional Minyard stores and 19 Sack ’n Save Warehouse Food Stores. The chain is now based in Coppell.

The deal involves 23 Carnival stores, five Minyard stores and nine Sack Â’n Save stores, the three brands run under the Minyard Food Stores Inc.

Minyard retains 21 stores, and it will convert the remaining Sack Â’n Save stores and a Plano Carnival store to Minyards.

Fiesta, which operates 15 stores in the Dallas-Fort Worth area, will take over 11 of the 37 acquired stores, with plans to maintain the Carnival brand.

Other members of HoustonÂ’s Grocers Supply Co. will get the remaining Minyard stores.

The acquisition affects about 2,500 Minyard employees. Fiesta will interview employees who are interested in staying on, Fiesta spokesman Don Bersterman said in a written statement.

“Grocers Supply and its retail customers need experienced workers to operate the stores, and Fiesta and the other buyers are committed to interviewing our store associates for hire in the stores they acquire,” Byars said. “Our management team will work to address affected communities’ concerns and assist associates with the transition. In addition, we will absorb as many associates as possible into our other stores.”The deal should be completed in four months, including a 60-day employee notification period and a 60-day takeover transition.

Contact Howe at ahowe@bizpress.net