MINNEAPOLIS/ST. PAUL, MINNESOTA - Jerry’s Enterprises will be closing two Rainbow Foods stores just months after buying them from Roundy’s Inc. as that retailer exited the Twin Cities market.
Roundy’s sold 18 of its 27 stores to a group of retailers led by Supervalu in a $65 million deal. The Star Tribune reports that Jerry’s, which operates stores under its own name and as a franchisee of Supervalu’s Cub Foods grocery line, was a member of that group.
In May, Roundy’s Chairman, President, and CEO, Robert A. Mariano, said that the economic downturn and increased competition in the Twin Cities has made it difficult to keep the Rainbow banner competitive. “We believe the sale of these Rainbow stores to this group of local operators will provide those stores better stewardship in serving their communities in the Minneapolis/St. Paul market going forward,” said Mariano. “The transaction will also allow us to better focus strategically on growing our Mariano’s banner in the Chicago market and strengthening our business in our core Wisconsin markets.”
Roundy’s made its official exit from the Twin Cities market with the closure of its 9 remaining Rainbow stores in July.
These two stores which were thought to be saved from closing are located in West St. Paul and on Minneapolis’ Lake Street, and each store employs about 25 full-time and about 60 part-time workers.
The Minneapolis/St. Paul Business Journal reports that Jerry's Enterprises said in a letter to West St. Paul that it "developed plans based on business considerations" to shut the store.
Luckily, West St. Paul Mayor John Zanmiller said there were other parties interested in redeveloping the site.
