The Kansas City Business Journal reports that single-store independent McGonigle's Market there has been sold to 122-store, Iowa-based Fareway Stores. Terms of the deal were not disclosed.
In a letter to customers posted on his website,. owner Mike McGonigle, who started working in his dad's store when he was 12, wrote, in part, "I have no regrets. I am proud of the business that I built. I am proud of the employees I have supported and who have supported me. I am proud to have survived as an independent retailer in the age of box stores and internet groceries. But, in this highly competitive world, it has become more and more challenging to keep it going and after some health issues in 2015, I centered my thoughts on an appropriate transition for the store.
"As I contemplated the future of McGonigle’s, I felt the need to keep the family owned, independent aspect intact. I wanted to make sure my customers and my people were well taken care of. This is where the new owners fit in. Fareway is family owned and operated. Their core values align well with my commitment to quality, integrity and personal service. I am confident they will be good stewards of the McGonigle’s legacy."
A liquidation sale has begun. McGonigle's will be closed on February 21, and reopened in early March under the new ownership.
- KC's View:
It is, unfortunately, a story that we are going to see more and more, as many independents realize that it is almost impossible to survive in the current environment. The good news is that the store will continue to serve its community, and the people who work there will continue to have jobs.
Could have been a lot worse.