Posted: 5/7/03

Rainbow Foods on list of Wisconsin firm

Cliff Buchan
News Editor

Roundyís, Inc., the largest grocery chain in Wisconsin, is bidding to become an owner of a store in Forest Lake.

The Pewaukee, WI, based grocery confirmed this week it has made a bid to purchase 30 of the 34 Rainbow Foods stores in the metro area, including the Forest Lake store at 289 SW 12th St.

Edward Katz, vice-president and secretary-treasurer, said Monday Roundyís has filed a purchase agreement with the Delaware federal court that is handling the bankruptcy proceedings of Fleming Cos, the Texas-based parent company of Rainbow Foods that has filed for Chapter 11 protection.

ìWeíre a ways from having this be a done deal,î Katz said. But he confirmed the company was seeking the Rainbow chain and the Forest Lake store was part of the acquisition plan.

Under the purchase agreement field this week, Katz said Roundyís would retain the right to use the Rainbow name if the agreement is accepted by the court. All current Rainbow employees would be retained under the proposal.

The court will review the proposal under an established schedule of events. The first consideration of the sale could come during a court review on Monday, May 19, Katz said.

Katz said a final decision could come as early as June 4 ìif things stay on course.î A sale closing date wonít be announced until the court takes its final action.

Roundyís own 80 stores with all but eight in Wisconsin, Katz said. Its trademark store is the Pickín Save grocery operation.

In the Forest Lake Rainbow Foods, Roundyís is bidding to acquire the second largest grocery store in Forest Lake, second only in size to Cub Foods.

The WestLake Plaza store opened in 1988 as a Festival Foods store and spanned some 34,000 square feet.

The store underwent a 15,000-square-foot expansion program in 1996, the same year the store changed from Festival Foods to Rainbow Foods.

Top of Page