Hamady Brothers

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Hamady Brothers
Partnership
Industry Retail
Fate (bankruptcy) revived
Founded Flint, Michigan, 1911
Founder Michael and Kamol Hamady
Defunct 1991 (1st)
Headquarters Flint, Michigan, United States
Area served
Flint, Michigan area
Key people
Jim McColgan Jr. (CEO, managing partner)
Products Groceries
Owner
  • Jim McColgan Sr.
  • Jim McColgan Jr.
  • Spike Pearson
  • Justin Campau[1]

Hamady Brothers was an American supermarket chain based in Flint, Michigan which at its peak had 37 stores and 1,300 employees.[2] Given the chain's prevasiveness in the area, paper grocery bags were known as “Hamady sacks”.[3] The family business is best remembered for sending truckloads of food to the strikers in the famous sit-down strike in 1937 of General Motors' Fisher Body plant that led to the recognition of the United Auto Workers by the auto industry.

History[edit]

Hamady Brothers was founded in 1911[4] by Michael and Kamol Hamady, who were immigrant cousins from Lebanon and referred to themselves as brothers.[2] The first store was opened on East Dayton Street and Industrial Avenue, Flint.[2]

Michael Hamady was the first CEO and was followed by his son Robert in 1954, his grand-nephew Jack in 1967, and by his grandson Robert Lee in 1969. Robert Lee restructured the company and[citation needed] sold it in 1974 to Alex Dandy.[3]

The chain expanded through Michigan in 1980 by purchasing 21 closed Kroger stores, primarily on the west side of the state.[5] In July and September 1985, Hamady bought two Hutch's supermarkets in Owosso, Michigan[6] followed by in October with the purchase of Vescio's 5 stores in Saginaw County. The two acquisitions, which would be rebranded as Hamady stores, bringing the chain's store total to 30.[7] As a result, an existing Hamady in Owosso was converted to a discount store called Price Rite. Price Rite was ran by a division of Durant Enterprises, Handy's parent corporation.[8]

The chain was hit with a seven-week strike in 1987.[3] Dandy's company also acquires Chatham. Chatham and Hamady were embezzled from by Dandy.[3] By 1988, the former Kroger locations, along with some former Vescio locations in Saginaw, Michigan, had closed.[citation needed] Hamady declared bankruptcy in 1988. In March 1989, a reorganization plan by M&B Distribution board chairman James McColgan Sr. for Hamady Bros. was approved by Federal bankruptcy Judge Arthur J. Spector. McColgan Investment Co., a M&B subsidiary, would purchase 21 Hamady Bros. supermarkets for about $17.9 million to which Dandy objected.[9] By May 1989, Dandy had approved the sale of Hamady assets to McColgan Investment. McColgan became chairman and chief operating officer.[10] The chain closed the last of its stores in 1991.[3] 13 locations were sold to Kessel Food Markets, which was founded in 1981 by former Hamady vice president Al Kessel.[11]

Revival[edit]

Jim McColgan, Sr. has announced that he is opening a Hamady Complete Food Center in a former Krogers location in August 2017 in Flint then Clio, Michigan with the desire to open in other locations.[12]

References[edit]

  1. ^ Lorenz, Jason; Feick, Joel (May 17, 2017). "Hamady returning to Flint with new location this summer". WEYI. Retrieved June 14, 2017. 
  2. ^ a b c "Former owner plans Hamady Bros. grocery store comeback in Flint area". Flint Journal. MLive Media Group. Retrieved June 13, 2017. 
  3. ^ a b c d e Adams, Dominic (September 25, 2014). "#FlintTBT: Hamady Bros. grocery stores served Flint area for decades". Flint Journal. MLive Media Group. Retrieved June 14, 2017. 
  4. ^ Samy S. Swayd (2009). The A to Z of the Druzes. Rowman & Littlefield. pp. 69–. ISBN 978-0-8108-6836-6. Retrieved 7 January 2014. An early 20th-century Druze immigrant to the United States who served as the chairman of the board of Hamady Brothers, established in 1911 in Flint, Michigan. 
  5. ^ "Kroger Selling Manistee Store". Ludington Daily News. AP. June 28, 1990. p. 1. Retrieved June 13, 2017 – via Google News Archive Search. 
  6. ^ Grnak, Robert J. (September 20, 1985). "2nd Hutch's Store to Be Bought by Hamady Brothers". The Argus-Press. Retrieved June 13, 2017 – via Google News Archive Search. 
  7. ^ "Hamady Chain Buys Vescio's Five Stores". The Argus-Press. October 3, 1985. p. 16. Retrieved June 13, 2017 – via Google News Archive Search. 
  8. ^ "(no title)". The Argus-Press. December 31, 1985. p. b3. Retrieved June 13, 2017 – via Google News Archive Search. 
  9. ^ Adler, Allan P. (March 27, 1989). "Judge's reorganization plan paves way for sale of Hamady". Supermarket News. Retrieved June 14, 2017 – via HighBeam Business. 
  10. ^ Adler, Allan (May 30, 1988). "Hamady sold to distributor in Michigan. (Hamady Bros. supermarket chain, M&B Distributing Co.)". High. Retrieved June 14, 2017 – via Beam Business: Arrive Prepared. 
  11. ^ Adams, Dominic (December 28, 2012). "A look back at the history of Kessel Food Markets in Flint, Saginaw". Flint Journal. MLive Media Group. Retrieved June 14, 2017. 
  12. ^ Conat, Randolph. "Hamady to open supermarket in Flint". abc12.com. Retrieved 13 June 2017.