(KLTV) - Brookshire's officials have announced the company is no longer for sale in a letter to employees.
In October, multiple agencies reported that the company was exploring a sale that could value their chain of stores at as much as one billion dollars. Brad Brookshire, Chairman of the Board of Brookshire Grocery Company, said in a letter dated Monday that the board of directors has decided to discontinue the sale process:
My fellow partners,
I am pleased to announce that the Board of Directors of the Company has decided this morning to discontinue the sale process of our company. The company is no longer for sale and we can now focus on the things that matter most - our customers and partners. I personally want to thank each of you for sticking with us during these past few months of difficult uncertainty.
Entering this week of Thanksgiving, I am more than ever thankful for our company, our 14,000 employee partners and our loyal customers. I firmly believe Brookshire Grocery Company is a business with solid foundation and enormous potential.
Most of all, as we come together to serve our customers this holiday week, I wish you and your family a wonderful Thanksgiving.
All the best,
Chairman of the Board
The company also released an official statement on the termination of the sale late Monday afternoon:
"Brookshire Holdings, Inc., parent company of Brookshire Grocery Company, today announced that the process in which it has been engaged to explore a possible sale of the company has been terminated. The company will continue to provide a great food and shopping experience for its customers and will have no further comment on this matter."
One analyst says something like this is very common in the industry.
"Sometimes offers just aren't good enough and they can be revisited down the road you know perhaps in 3 months, 6 months, or a year we could be seeing all this happen again," Supermarket Research Consultant David Livingston explained.
From a company standpoint, Livingston also thinks Brookshire's made the right decision.
"I think most grocers are better off being privately held rather than being owned by a larger conglomerate," he added.
From a community perspective, Tom Mullins, President and CEO of the Tyler Economic Development Council, said Brookshire's decision not to sell will benefit the communities they serve.
"There are potentially hundreds of middle and upper management jobs that could have been negatively impacted if another grocery group had taken over Brookshire's because one of the things about take overs is they consolidate," Mullins said.
He also said not selling Brookshire's means the community outreach they do will continue.
"They are a major community partner in every case. There was no guarantee that a new owner would follow through and make those kinds of commitments," Mullins added.
Since opening in 1928, Brookshire's has grown to include more than 150 stores in Texas, Louisiana, and Arkansas. They employ more than 13,000 people, 10,000 of them right here in East Texas.