Often, when a larger company buys a smaller rival, it makes promises it never intends to keep. In many ways, it’s like the start of most relationships, when both sides put their best foot forward, hide their flaws, and pledge eternal devotion.
“I’ll love you forever baby, never change a thing,” so the speech usually goes.
Once the marriage happens, at least in the corporate world, the promises end.
Related: Costco has a great offer for drivers
That’s essentially what has happened in the merger of Maverik and iconic convenience store chain Kum & Go.
Maverik was respectful of the Kum & Go legacy when it closed the deal in August 2023.
“The closing of this transaction creates a best-in-class convenience store network across the Midwest and Rocky Mountain regions, growing Maverik’s footprint to over 800 stores in 20 states with approximately 14,000 Team Members,” it shared.
At the time, the fate of the Kum & Go brand was unclear.
Kyle Krause, CEO and a member of the chain’s founding family, however, delivered what felt more like a eulogy.
“Together over four generations – from my grandfather Tony and my dad Bill to me and my son Tanner – we built these businesses over 64 years through shared vision, collective entrepreneurship, and teamwork. I’m also incredibly thankful for our Associates and their unique contributions that allowed Kum & Go and Solar Transport to reach this level of success,” he shared.
Image source: Chet Strange/Bloomberg via Getty Images
Kum & Go brand is on its way out
While Maverik executives were respectful of the brand they were acquiring, Krause likely knew that the sales meant the end of his family legacy. He tried, however, to put on a brave face.
“We’ve run the businesses and differentiated ourselves by putting people first and making days better in all we do,” he said. “I’m confident Kum & Go and Solar Transport are set up for future success with Maverik. As we start the next chapter at Krause Group, we will nurture our family of brands and create more opportunities to do good in the world.”
Those opportunities, he did not need to say, do not include the survival of the Kum & Go brand.
Maverik has continued to be respectful, but has also been slowly replacing Kum & Go with its own stores. That will continue until the legacy chain has been consigned to history.
More Retail:
- Troubled retailer files Chapter 11 bankruptcy, liquidates stores
- Wayfair struggles to reverse concerning customer behavior
- Walmart introduces mobile new store format for younger customers
The company has not detailed its plans, but it has been steadily changing over stores.
“Adventure Calling! Your Kum & Go is becoming a Maverik!” the new owner has shared on the website of various Kum & Go locations. “We’re remodeling your store to bring you the full Maverik experience. From exclusive deals to fuel savings, now’s the perfect time to explore what Maverik has to offer.”
Kum & Go legacy workers slashed
When two companies combine, some redundancy ultimately needs to be eliminated. That usually means workers at the smaller company suffer.
Maverik has begun making cuts at the former Kum & Go headquarters in Des Moines, Iowa. It shared the details in a letter to the city.
About 100 workers will be cut in Iowa, including Chief Development Officer Nicole Mason, who joined Maverik in 2023, but had a long career with Kum & Go before that.
Maverik will retain 63 employees in Des Moines and is offering eight others relocation packages.
“As part of our ongoing efforts to improve efficiency and better serve our growing customer base, Maverik has made the difficult decision to consolidate its Base Camp headquarters in Salt Lake City,” Maverik said in a statement shared with CSP.
The new owner is basically only keeping enough people in Iowa to support local operations.
“A limited presence will remain in Des Moines to support geographically based business needs. We are currently working closely with impacted team members to develop individual plans, including relocation opportunities, and are committed to supporting them with transparency and care throughout this transition,” it added.
Related: Hershey teams up with Costco to make a dream candy combo
