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The investment group that acquired Minyard Food Stores from the founding family in 2004 announced that it is selling 37 stores and its Hispanic-focused Carnival brand to Grocers Supply Co., which owns Fiesta Mart.

Terms of the deal were not disclosed.

The Dallas Morning News writes that Minyard’s “market share has been shrinking in the face of growing pressure from larger chains, including Walmart Stores Inc. and Kroger Co. Minyard president and chief executive Mike Byars said the company faced a challenge in running three brands: Minyard, Carnival and Sack 'n Save.”

According to the story, “The deal involves 23 Carnival stores, five Minyard stores and nine Sack 'n Save stores. Minyard retains 21 stores, and it will convert the remaining Sack 'n Save stores and a Plano Carnival store to Minyards … Houston-based Fiesta, Carnival's main competitor, will take on 11 of the 37 acquired stores, and it plans to maintain the Carnival brand, Mr. Byars said.

“Fiesta operates 15 stores in the area.

“Other members of Houston's Grocers Supply Co., a food wholesaler that owns Fiesta, will get the rest of the stores. Grocers Supply was unavailable for comment.”

KC's View:
There is a sense about this story that only one shoe has dropped.