Mega Co-op to Cut Ties With Holiday
EAU CLAIRE, Wis. — As part of its exit strategy from bankruptcy, Mega Co-op plans to end its franchise relationship with Holiday Stationstores.
The c-store cooperative is expected to confirm its post-bankruptcy business plan on June 7, according to a report from local station WQOW.
Mega Co-op declared Chapter 11 bankruptcy last September, resulting in the closure of 13 stores. However, the organization ensured it continued its primary operations, including paying all employees and continuing benefit programs. It also offered all employees who worked at a closed store a position at a remaining Mega Co-op location.
The Leader-Telegram reported that Mega and Holiday have had a franchise partnership since 2009, with 18 stores still open after the changes last fall. However, with this new plan, 13 c-stores will remain under the Mega Co-op banner, while five will revert to the Holiday label as of May 24.
The partnership's end "aims to provide better products, services, and pricing for co-op members and customers. This move is expected to enhance the cooperative's long-term financial stability," the company stated in a press release.
“We're thankful for the loyalty of our cooperative members," Mega CEO Mike Buck added. "Our stores thrive through community support, and we are eager to return to our local cooperative roots, introducing new products and services."
WQOW reported the remaining 13 locations will be rebranded over the summer and will offer bp-branded fuel. In the meantime, loyalty members will continue to receive 5 cents off per gallon on fuel purchases.
[Read more: Circle K & Holiday Stationstores Fined Over Underground Storage Tanks]
Founded in 1928 by brothers Arthur and Alfred Erickson, Holiday Stationstores grew to become the 18th largest convenience store chain in the United States, with more than 500 locations in 10 states, plus two food commissaries, a fuel terminal and a car wash network. In 2017, Holiday was acquired by Laval, Quebec-based Alimentation Couche-Tard Inc. and became part of the Circle K family of stores.
Founded as the Eau Claire Farmer-Labor Cooperative Association in 1935, Mega's parent organization Consumers Cooperative Association of Eau Claire continues to provide its more than 20,000 members with service, quality and value.